RBI seeks option of interoperable card-less cash withdrawal at ATMs

NPCI has been advised to facilitate Unified Payments Interface integration with all banks and ATM networks, says RBI

Reserve Bank of India on Thursday asked all banks, ATM networks and White Label ATM Operators (WLAOs) to provide option of ICCW (interoperable card-less cash withdrawal) at their ATMs.

NPCI has been advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks. 

"While UPI would be used for customer authorisation in such transactions, settlement would be through the National Financial Switch (NFS) / ATM networks. The on-us/ off-us ICCW transactions shall be processed without levy of any charges other than those prescribed under the circular on Interchange Fee and Customer Charges," said RBI in a statement. 

Withdrawal limits for ICCW transactions shall be in-line with the limits for regular on-us / offus ATM withdrawals, said RBI.

In a bid to check fraud, the Reserve Bank, in April, said it has been decided to permit all banks to introduce card-less cash withdrawal through ATMs.

Currently, card-less cash withdrawal through ATMs is a permitted mode of transaction offered by a few banks in the country on an on-us basis (for their customers at their own ATMs).

“It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the UPI. In addition to enhancing ease of transactions, the absence of the need for physical card for such transactions would help prevent frauds such as card skimming, card cloning, etc,” RBI Governor Shaktikanta Das said while announcing bi-monthly monetary policy review on April 8.