In order to reduce the incidents of increasing fraud and card cloning, RBI has changed the rules for withdrawing money from ATMs. For this, orders have been given to all banks and ATM operators on behalf of RBI
Reserve Bank of India has ordered banks and ATM operators for cardless withdrawal from ATMs.
After the implementation of this rule of RBI, the way of withdrawing cash from ATM will change completely. The advantage of this will be that card cloning, card skimming and other bank frauds will be reduced. One will not need a debit or credit card to withdraw cash in a cardless transaction. In this, one will be able to withdraw money from ATM only through apps like UPI payment app like Paytm, Google Pay, Amazon Pay or PhonePe.
After the instructions of RBI, now all banks and ATM operators will have to wait for cardless cash withdrawal. Under the rules applicable by the Reserve Bank, any bank can give this facility to the account holder of any bank. For this, NPCI has received instructions for UPI integration. The charges currently levied on the ATM card will remain the same even after the change. No changes will be made in these. Apart from this, the limit for withdrawal of funds from cashless transactions (Cash Withdrawal Rules) will also remain the same as before.
The facility of cardless transactions is currently available at ATMs of only a few banks. Under the new system, the customer will no longer need to enter the debit card in the ATM. For this, the customer has to scan the QR code at the ATM. After that, the money will come out on entering the 6 digit UPI.
The purpose of RBI behind implementing the cashless cash withdrawal system is to reduce the incidents of increasing fraud. This is expected to reduce card cloning, card skimming and other bank frauds. Also, one will not need a card to withdraw money.