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RBI Deputy Governor Rabi Shankar announced on April 8, 2022 that card-less cash withdrawals will be introduced at all ATMs to evade card skimming. Shankar informed that the proposal is to begin authentication through UPI.
The card-less cash withdrawals can be used for withdrawal from any bank’s ATM or third-party ATM or White-Label ATM. The Reserve Bank of India is currently working out its system changes and instructions.
We won’t stop issuing credit/debit cards, as they have many other utilities; they’re not just used for cash withdrawals, they can be utilized while at a restaurant, shop, or for payments in a foreign country. So credit & debit cards will be continued: RBI Governor Shaktikanta Das pic.twitter.com/bQfXAW7Znr
— ANI (@ANI)
April 8, 2022
What will happen to credit/ debit cards?
RBI Governor Shaktikanta Das clarified that the banks will not stop issuing credit/debit cards, as they are not just used for cash withdrawals but have many other utilities as well. The credit and debit cards can be utilised to shop, dine out or make payments in a foreign country and hence they will be continued.
How will a customer withdraw money without a card?
Under the card-less cash withdrawal facility, a customer will not be required to use his or her debit or credit cards to withdraw money from the ATMs.
Card-less Cash Withdrawals- Significance
At present, only a few banks offer the facility of cardless cash withdrawal through ATMs. It is now being proposed to make the facility available across all banks and ATM networks using a unified payments interface (UPI).
Benefit
The card-less cash withdrawals will enhance the ease of transactions and make them faster and smoother.
It will also make cash withdrawals more secure, as the absence of the need for a physical card for such transactions will help prevent fraudulent activities involving the card, such as card skimming and cloning.
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