RBI has announced a new step for cash withdrawal without debit and credit cards. RBI has provided a new step from a security point of view. This new method will not involve the use of credit or debit cards. The chances of card skimming will be reduced through this step. RBI Deputy Governor Rabi Shankar said in a statement, "We are introducing cardless cash withdrawal to avoid card skimming. Authentication through UPI is proposed. This can be used at any bank's ATM, Withdrawals can be done from third-party ATMs or white label ATMs. We are working on the system changes and instructions."
With the cashless withdrawal, the usage of credit and debit cards will not change much. Users will still be able to withdraw money using their cards. Wherever you go shopping or eat food, you will be able to pay with the card. RBI Governor Shaktikanta Das said, “We will not stop issuing credit/debit cards, as they come with many other facilities. They are used not only for cash withdrawal but also for any restaurant, shop or any other country.” Credit and debit cards will continue to be made for payment in
How will the new method work
To withdraw cash without a card, you will need a UPI ID. The transaction will be authenticated through UPI.
After going to the ATM, you have to select the "Cashless Withdraw" option on the screen.
After this, a QR code will appear on the ATM screen, which will have to be scanned in the UPI app.
Then the user will enter the UPI PIN and the cash will be withdrawn from the ATM machine.
Benefits of the new cardless cash withdrawal:
Cardless cash withdrawals will reduce the dependency on always carrying a debit or credit card. All you need is a smartphone with your registered mobile number and a UPI ID.
RBI has confirmed that with the introduction of this new service, the card skimming risk will be reduced. Users will not have to worry about their ATM cards being skimmed and cloned.
Note: Please note that this method of cardless cash withdrawal will already be available with ICICI and SBI Bank. However, it will be rolled out to other banks as well and will work with third-party ATMs as well