Cardless cash withdrawal at ATMs soon: Find out how it works


The Reserve Bank of India has asked banks to provide the option of Interoperable Card-less Cash Withdrawal (ICCW) at their ATMs in order to curb fraud. In a notification dated May 19, the RBI wrote that “all banks, ATM networks, and WLAOs may provide the option of ICCW at their ATMs”. It further stated that the “NPCI has been advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks.”

Currently, cardless cash withdrawal through ATMs is offered by a few banks for their customers at their own ATMs (also known as an on-us basis).

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What is card-less cash withdrawal?

According to the RBI, 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’. The process would help in containing frauds like skimming, card cloning, and device tampering, among others. In order to encourage the card-less cash withdrawal facility across all banks and all ATM networks, the RBI has proposed to enable customer authorization through the use of UPI. As per the Reserve Bank, separate instructions for the same are being issued to the NPCI, ATM networks, and banks.

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How does the card-less cash withdrawal work?

While UPI would be used for customer authorization in cardless transactions, the settlement would be through the National Financial Switch (NFS), or the ATM networks, as per the RBI notification.

Along with this, the RBI mentioned that 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.

The withdrawal limits for ICCW transactions shall be in-line with the limits for regular ATM withdrawals.

Meanwhile, the RBI said that all other instructions related to Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions shall continue to be applicable.

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