In a significant development in the banking sector, customers can now withdraw money from ATMs without the need for a physical card.
India’s largest banks, State Bank of India (SBI) and Bank of Baroda, have introduced an interoperable cardless cash withdrawal facility, allowing customers to access their funds using their mobile phones.
Introduction of Interoperable Cardless Cash Withdrawal by RBI
The Reserve Bank of India (RBI) announced on April 8, 2022, that it has authorized interoperable cardless cash withdrawals from all bank ATMs across the country.
These transactions leverage the Unified Payments Interface (UPI) facility, offering a simple, convenient, and secure method for cash withdrawals without a 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 have an account with Union Bank of India but only have access to a nearby State Bank of India (SBI) ATM, you can use the UPI QR Cash feature to withdraw money seamlessly.
A single-use QR code displayed on the ATM screen allows users to initiate the transaction using the scan and pay functionality in their UPI application.
How Does this Service Work?
Let’s take an example where you hold an account with SBI and wish to withdraw cash from an SBI ATM using UPI.
You need to have the SBI YONO or YONO Lite app installed on your mobile phone, with mobile banking enabled.
At the ATM, select the ‘QR Cash’ option on the screen, which presents you with choices for cash withdrawal amounts, such as Rs 2,000 and Rs 4,000.
Select the desired option and scan the QR code displayed on the ATM screen using the ‘QR Cash Withdrawal’ feature in the YONO app.
The requested amount will then be dispensed from the ATM. Bank of Baroda and other banks offer similar functionality for cash withdrawals using UPI through their respective mobile banking apps.
Maximum Withdrawal Limit and Benefits for Customers
Using the UPI ATM facility, customers can withdraw a maximum of Rs 1 lakh per month, in line with RBI guidelines limiting UPI transactions.
However, individual banks may also impose their own withdrawal limits.
For instance, Bank of Baroda allows customers to conduct two transactions per account per day, with a daily withdrawal limit of Rs 5,000 using the UPI facility.
This new feature not only enhances convenience but also improves security for customers. Now, you can withdraw money from ATMs anytime and anywhere, without the need for a physical card.
As people have become accustomed to making payments through their mobile phones, this service allows them to conveniently access their funds through UPI.
Additionally, in the event of a transaction failure, the money will be refunded within seven working days, ensuring peace of mind for customers.
