The Reserve Bank of India has asked all private and public sector banks to provide the option of Interoperable Cardless Cash Withdrawal (ICCW) at their ATMs. Currently, this facility is offered for their customers by only a few banks at their own ATMs. In a circular called ‘Interoperable Card-less Cash Withdrawal (ICCW) at ATMs’, the central bank has directed all banks, ATM networks and WLAOs to provide the ICCW option at their ATMs.
Highlights of RBI instructions to banks for Cardless ATM
1) All banks, ATM networks and WLAOs (White Label ATM Operators) may provide the option of ICCW at their ATMs, the central bank said in the circular.
2) It further said the National Payments Corporation of India (NPCI) has been advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks.
3) While UPI would be used for customer authorisation in such transactions, settlement would be made through the National Financial Switch (NFS)/ATM networks.
4) The on-us/off-us ICCW transactions shall be processed without levy of any charges other than those prescribed (on Interchange Fee and Customer Charges).
5) Withdrawal limits for ICCW transactions will be in line with the limits for regular on-us/off-us ATM withdrawals.
6)The RBI said all other instructions related to harmonisation of turn around time (TAT) and customer compensation for failed transactions will continue to be applicable.
In April, the RBI had said the absence of need for a card to initiate cash withdrawal transactions would help in containing frauds like skimming, card cloning and device tampering.
UPI cashless card facility
UPI cashless card facility allows customers to withdraw cash using their mobile with any UPI enabled app such as BHIM, Paytm, GPay, etc. There is no need to swipe or carry a card while visiting the UPI-enabled ATMs. A user needs to scan the QR code on the screen and authorise cash withdrawal through his or her mobile phone.
Banks offering Cardless Cash Withdrawal facility
Major lenders like SBI, ICICI Bank and HDFC Bank are offering this facility. To use it, a customer has to register on the app or the website of the respective bank and initiate the card-less cash withdrawal transaction.