New Delhi, Apr, 18: The Reserve Bank of India (RBI) recommended an interoperable cardless withdrawal option via Unified Payment Interface (UPI) across ATM networks earlier this month in an effort to combat financial fraud.
The National Payments Corporation of India (NPCI), which is controlled by the Reserve Bank of India, developed the Unified Payments Interface (UPI). UPI is based on the IMPS infrastructure and allows you to send money between any two bank accounts in real time.
State Bank of India (SBI), ICICI Bank, Kotak Mahindra Bank, Bank of Baroda (BoB), and RBL Bank already offer cardless withdrawals, but only to its customers who use the same bank’s ATM network. The RBI’s proposal is to make the service available at all ATMs to all bank customers.
“In addition to improving transaction simplicity, the elimination of the necessity for a physical card for such transactions will help prevent frauds like card skimming, card cloning, and so on,” said Governor Shaktikanta Das in an April 3 statement.
UPI cardless withdrawals
A cardless transaction is sending money from a bank account to anyone in India with a valid mobile phone number, who subsequently withdraws cash from an ATM without using a debit or ATM card. It can be used at any bank’s ATM, as well as third-party and white-label ATMs.
Although the RBI is yet to release rules to the NPCI and banks on interoperable cardless withdrawals via the UPI network, there are a few options on the market that might be used to launch the service.
AGS Transact, an ATM vendor, is testing a UPI-based candles withdrawal system that allows customers to scan a QR code on the ATM screen using their bank smartphone. In a second model, which SBI is now using for its YONO app, the client signs into the bank app and enters the amount to be withdrawn; the app then creates a transaction number and a six-digit pin to withdraw the funds.
Debit Cards Future
In a press conference on April 8, the RBI clarified that it will continue to provide credit and debit cards, as well as a variety of other services. They can be used for more than simply cash withdrawals; they can also be used to make payments in a foreign country. As a result, credit and debit cards will continue to be accepted, he said. Debit cards are, therefore, here to stay.
