Introduction: Some banks, namely, Axis Bank, Bank of Baroda, ICICI Bank and SBI, among others, are already offering card-less ATM cash withdrawal option to its credit or debit cardholders for on-us (own ATMs) transactions, using their mobile phones. However, majority of banks doesn't offer this facility to its customers. There is a daily cash withdrawal limit prescribed by individual banks offering this facility, ranging from Rs 10,000/- to Rs 20,000/-. RBI has notified all banks, ATM networks and white label ATM operators (WLAOs) for providing interoperable card-less cash withdrawal (ICCW) at cash-dispensing (ATM) machines. Earlier, RBI had announced ICCW facility at all ATMs, using UPI, in its monetary policy review meeting held in April 2022.
Let's understand salient features of ICCW facility for the customers of the issuing banks.
* National Payments Corporation of India (NPCI) will facilitate integration of Unified Payments Interface (UPI) with all banks and ATM networks.
* The UPI usage would be for customer authorisation or authentication for ICCW transactions. Whereas National Financial Switch / ATM networks would be used for payment settlements.
* The on-us (own ATMs) and not-on-us (other ATMs) ICCW transactions would not be subject to levy of additional charges other than the extant ones beyond free-limit, and Interchange fees.
* Cash withdrawal limits for ICCW transactions would be in line with the existing on-us (own ATMs) and not-on-us (other ATMs) limits for routine cash withdrawals.
* The ICCW facility would aid in containing frauds like card cloning, device tampering, and skimming though it might affect or restrict debit card issuance.
* All the extant guidelines in relation to Turn-around-time (TAT) and customer compensation for failed transactions would continue to be applicable.
Please keep watching this space for more updates on the BFSI sector!
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