In a bid to check fraud, the RBI has decided to permit all banks to introduce cardless cash withdrawals through ATMs. Currently, cardless cash withdrawal through ATMs is a permitted mode of transaction offered by a few banks in the country on an on-us basis and for their customers at their own ATMs.
RBI Governor Shaktikanta Das said that “It is now proposed to make cardless cash withdrawal facility available across all banks and ATM networks using the UPI. In addition to enhancing the ease of transactions, the absence of the need for a physical card for such transactions would help prevent frauds such as card skimming, and card cloning.
It is proposed to enable customer authorization through the use of the Unified Payments Interface (UPI) while settlement of such transactions would happen through the ATM networks. RBI will issue separate instructions to NPCI, ATM networks, and banks shortly.
With regard to Bharat Bill Payment System (BBPS), he said, it is an interoperable platform for bill payments, which has seen an increase in the volume of bill payments and billers over the years.
To further facilitate greater penetration of bill payments through the BBPS and to encourage the participation of a greater number of non-bank Bharat Bill Payment Operating Units in the BBPS, it is proposed to reduce the net worth requirement of such entities from Rs 100 crore to Rs 25 crore. The necessary amendment to regulations will be carried out shortly.
Observing that payment systems play a catalytic role in facilitating financial inclusion and promoting financial stability, the statement said, maintaining the safety and security of these systems is a key objective of RBI.