In recent times, the banking sector has been witnessing frequent changes, and one such change in the spotlight is the new method of withdrawing money from ATM machines without the need for a physical card.
State Bank of India (SBI) and Bank of Baroda, two of India’s largest banks, have initiated an interoperable cardless cash withdrawal facility for their customers, enabling them to withdraw money conveniently, even without a card.
RBI’s Cardless Cash Withdrawal
The Reserve Bank of India (RBI) made an announcement on April 8, 2022, regarding the implementation of interoperable cardless cash withdrawals across all bank ATMs in the country.
This feature utilizes the Unified Payments Interface (UPI) facility.
Bank of Baroda’s Chief Digital Officer, Akhil Handa, explains that this new facility empowers customers to withdraw money securely and effortlessly, without relying on a physical card.
Understanding the Interoperable Cardless Service
With the interoperable cardless cash withdrawal facility, customers can withdraw cash from any bank’s ATM using the UPI facility.
For instance, if you hold an account with Union Bank of India but find yourself near an SBI ATM,
you can conveniently withdraw cash from your Union Bank account at the SBI ATM using the UPI facility.
Both SBI and other banks’ customers can effortlessly withdraw cash from any interoperable cardless cash withdrawal-enabled ATMs using the ‘UPI QR Cash’ feature.
This can be done by scanning a single-use QR code displayed on the ATM screen, utilizing the scan and pay facility available on the UPI application.
How the Service Works?
Let’s consider an example: if you have an account with SBI and wish to withdraw cash from their ATM using UPI, you need to have the SBI YONO or YONO Lite app installed on your mobile phone with mobile banking enabled.
Upon selecting the ‘QR Cash’ option on the ATM screen, you will be presented with withdrawal options of Rs 2,000 and Rs 4,000.
Choose the desired option and scan the QR code displayed on the ATM screen using the ‘QR Cash Withdrawal’ feature in the YONO app.
Subsequently, the cash will be dispensed from the ATM.
Bank of Baroda and other banks offer a similar facility for cash withdrawal through their respective mobile banking apps, utilizing the UPI facility.
Withdrawal Limit and Guidelines
Using the UPI ATM facility, customers can withdraw a maximum of Rs 1 lakh per month.
This withdrawal limit is in accordance with RBI guidelines, as transactions up to Rs 1 lakh per month can be conducted through UPI.
However, individual banks may impose additional restrictions on withdrawals using this facility. For instance,
Bank of Baroda allows two transactions per account per day, with a daily withdrawal limit of Rs 5,000 via the UPI facility.
Customer Benefits and Safety Measures
This new feature not only enhances customer safety but also provides the convenience of cardless cash withdrawals from any location, at any time.
Experts suggest that as people have grown accustomed to making mobile payments, they will now be able to withdraw money using UPI directly from their mobile devices.
Additionally, if a transaction fails due to any reason, the money will be refunded within seven working days, ensuring peace of mind for customers.