On April 8, the Reserve Bank of India (RBI) proposed to make card-less cash withdrawals available across all banks and ATM networks using the Unified Payments Interface (UPI) to boost card-less cash withdrawals.
Only a few banks currently offer cardless cash withdrawals using ATMs. According to the central bank, cardless cash withdrawal using ATMs is a permissible form of transaction offered on a case-by-case basis by a few banks in the country (for their customers at their own ATMs).
Through card-less cash withdrawal, you can now send money from a bank account to anyone in India with a valid mobile phone number. The beneficiary can then use the ATM to withdraw cash without having to use a debit or an ATM card.
The lack of a physical card for such transactions would help avoid frauds such as card skimming, card cloning, and so on, in addition to making transactions easier.
Furthermore, the RBI has taken initiatives to boost merchant adoption of the Bharat Bill Payment System (BBPS). BBPS users benefit from a standardised bill payment experience, a centralised customer grievance resolution process, and a specified customer convenience charge, among other things.
According to the RBI, BBPS has experienced an increase in transaction volume as well as the number of onboarded billers. The RBI also proposed lowering the net worth threshold for non-banking operational units from US$ 100 million to US$ 25 million. This approach will encourage even more new participants to join the BBPS ecosystem.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.