Card-less money withdrawal facility throughout all banks’ ATM community quickly: RBI

In a bid to examine fraud, the Reserve Bank on Friday determined to allow all banks to introduce card-less money withdrawal by means of ATMs.

Currently, card-less money withdrawal by means of ATMs is a permitted mode of transaction provided by a number of banks within the nation on an on-us foundation (for his or her prospects at their very own ATMs).

“It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the UPI. In addition to enhancing ease of transactions, the absence of the need for physical card for such transactions would help prevent frauds such as card skimming, card cloning, etc,” RBI Governor Shaktikanta Das stated whereas asserting bi-monthly financial coverage overview.

It is proposed to allow buyer authorisation by means of the usage of Unified Payments Interface (UPI) whereas settlement of such transactions would occur by means of the ATM networks, a press release on Developmental and Regulatory Policies stated.

Separate directions could be issued to NPCI, ATM networks and banks shortly, it stated.

With regard to Bharat Bill Payment System (BBPS), he stated, it’s an interoperable platform for invoice funds, which has seen a rise within the quantity of invoice funds and billers over time.

To additional facilitate higher penetration of invoice funds by means of the BBPS and to encourage participation of a higher variety of non-bank Bharat Bill Payment Operating Units within the BBPS, it’s proposed to scale back the online price requirement of such entities from Rs 100 crore to Rs 25 crore.

The essential modification to laws can be carried out shortly.

Users of BBPS take pleasure in advantages like standardised invoice fee expertise, centralised buyer grievance redressal mechanism, prescribed buyer comfort payment, and many others.

BBPS is an interoperable platform for invoice funds and the scope and protection of BBPS extends to all classes of billers who increase recurring payments.

It is noticed that there has not been a corresponding development within the variety of non-bank Bharat Bill Payment Operating Units (BBPOUs).

Observing that fee techniques play a catalytic function in facilitating monetary inclusion and selling monetary stability, the assertion stated, sustaining the security and safety of those techniques is a key goal of RBI.

With higher adoption of digital fee modes, you will need to be sure that fee system infrastructures are usually not solely environment friendly and efficient but additionally resilient to standard and rising dangers, particularly these referring to cyber safety, it stated.

“To ensure that our payment systems remain resilient to conventional and emerging risks, specifically those relating to cyber security, it is proposed to issue guidelines on Cyber Resilience and Payment Security Controls for Payment System Operators,” he stated.