RBI extends card-less money withdrawal facility through UPI to all banks

To encourage card-less money withdrawal facility, the Reserve Bank of India (RBI) on Friday proposed to make card-less money withdrawal facility accessible throughout all banks and ATM networks utilizing the Unified Payments Interface (UPI).

At current, the ability of card-less money withdrawal by way of ATMs is proscribed solely to a couple banks. As per the central financial institution, card-less money withdrawal by way of ATMs is a permitted mode of transaction supplied by a couple of banks within the nation on an on-us foundation (for his or her clients at their very own ATMs).

“Now you may ship cash from a checking account to anybody in India with a sound cell phone quantity by way of card-less money withdrawal. The beneficiary can then withdraw money from the ATM with out utilizing a debit or an ATM card,” stated Adhil Shetty, chief government officer, Bankbazaar.com.

RBI governor Shaktikanta Das, whereas saying the primary Monetary Policy Committee (MPC) assertion for the monetary yr 2022-2023, stated that along with enhancing ease of transactions, the absence of the necessity for bodily card for such transactions would assist stop frauds similar to card skimming, card cloning, and so on.

According to the central financial institution, separate directions could be issued to National Payments Corporation of India (NPCI), ATM networks and banks shortly.

“Under the card-less money withdrawal facility, a person can authenticate a transaction, and that is anticipated so as to add a layer of safety and authentication to the transaction. This may also stop frauds occurring because of skimming of card or card cloning,” stated Dewang Neralla, chief government officer, NTT DATA Payment Services India Ltd.

Experts really feel that extending card-less money withdrawal facility through UPI to all banks will present a complete new stage of ease of transactions throughout the banking system, which provides to the bouquet of digital transaction providers for the economic system.

Furthermore, RBI has taken steps to extend penetration of Bharat Bill Payment System (BBPS) fee assortment for retailers.

Users of BBPS take pleasure in advantages similar to standardized invoice fee expertise, centralized buyer grievance redressal mechanism, prescribed buyer comfort payment, and so on.

As per RBI, BBPS has seen a rise within the quantity of transactions in addition to variety of onboarded billers.

“The RBI on Friday proposed the discount of internet value standards for non-banking working items from ₹100 crore to ₹25 crore. This transfer will additional increase a lot of new gamers to enter the BBPS ecosystem and can thus improve the BBPS community within the nation,” stated Neralla.

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