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RBI directs banks on Cardless cash withdrawals at all ATMs

The Reserve Bank of India (RBI) has ordered all the banks to provide an Interoperable Cardless Cash Withdrawal (ICCW) system in their ATMs.

In accordance with the RBI’s notification dated May 19, 2022, all banks, ATM networks, and WLAOs will provide ICCW shortly.

NPCI has been advised to integrate all the banks and ATM networks with the Unified Payments Interface (UPI), which can be useful in customer authorization during ICCW transactions.

The settlement in this process will be carried out by National Financial Switch (NFS)/ ATM networks.

The on-us/ off-us ICCW transactions have no underlying charges unless it is prescribed under the circular of Interchange Fee and Customer Charges.

The notification further added that the withdrawal limit for ICCW will be similar to the regular ATM transactions. The other instructions regarding Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions are duly applicable.

Currently, some banks offer the on-us basis of ICCW, which means that customers can make cardless cash withdrawals only at the specific bank’s ATM.

In a monetary policy review meeting held in April 2022, RBI had proposed the access of Interoperable Cardless Cash Withdrawals across all bank ATMs using UPI.

The RBI Governor Shaktikanta Das said that only a few banks have the facility of cardless cash withdrawal; hence this facility must be spread across all the banks and their ATM networks. ICCW enhances the ease of transactions and reduces frauds like card skimming, card cloning, etc.

The above statement was also issued on RBI’s Developmental and Regulatory Policies on April 8, 2022. It further added that separate instructions would be issued to NPCI, banks, and ATM networks on the same shortly.

The HDFC Bank Website states that a cardless cash withdrawal request can be initiated for a minimum transaction of Rs.100/- up to a maximum of Rs.10,000/- per day. The withdrawal limit for a beneficiary is Rs. 25,000/- per month.

Any cardless cash withdrawal request by HDFC customers is only valid for 24 hours, post which the request will be reverted to the account that the initiator debited.

On the other hand, ICICI bank allows access to cardless cash withdrawals for customers with current accounts registered for Corporate Internet Banking (CIB). For bulk withdrawals, the customer has to be enabled by ICICI bank.

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