Now, one can withdraw cash from ATMs without the need to carry his/her ATM card.
The Reserve Bank of India (RBI) has asked all banks and ATM networks to provide the option of cardless cash withdrawal.
The central bank in a notification on Thursday said that the National Payment Corporation of India (NPCI), the nodal agency that promotes digital payments, has been facilitating Unified Payments Interface (UPI) integration with all banks and ATM networks.
"While UPI would be used for customer authorisation in such transactions, the settlement would be through the National Financial Switch (NFS) / ATM networks," the RBI said in the notification.
There will be no additional charges on availing cardless withdrawal facility other than the usual ATM fee levied on cash withdrawals.
At present, cardless cash withdrawal through ATMs is a permitted mode of transaction offered by a few banks in the country for their customers at their own ATMs.
According to an earlier announcement by the RBI, the absence of a need for a card to initiate cash withdrawal transactions would help in containing frauds like skimming, card cloning, device tampering, etc.
Therefore, to encourage card-less cash withdrawal facility across all banks and all ATM networks/ operators, the RBI had proposed to enable customer authorisation through the use of UPI while settlement of such transactions would happen through the ATM networks.