Cardless ATM Withdrawal Via UPI Will Be Rolled Out For All Banks: RBI Mandate

Cardless ATM Withdrawal Via UPI Will Be Rolled Out For All Banks: RBI Mandate
Cardless ATM Withdrawal Via UPI Will Be Rolled Out For All Banks: RBI Mandate

RBI Governor Shaktikanta Das said that a proposal has been made which would make cardless cash withdrawals possible using UPI.


Pandemic Idea

Currently, card-less cash withdrawal through ATMs is a permitted mode of transaction offered by a few bankson an on-us basis (for their customers at their own ATMs).

This could soon change once interoperability is implemented which would allow people to withdraw cash from any other bank’s ATM.

It was first introduced during the pandemic when several people were reluctant to go to ATMs due to the physical contact that would be required.

Withdrawal Via Mobile

Cardholders of various banks including SBI, ICICI Bank, Axis Bank and Bank of Baroda can withdraw cash even through their phones.

They use a mobile banking app and raise a request to withdraw cash at the ATMs if they do not have debit cards.

This works by the remitter creating an IMT (Instant Money Transfer), which allows it to transfer money using only the mobile number of the beneficiary.

People will be able to withdraw cash without using any debit card.


The withdrawal request can be initiated for a minimum of ?100 per transaction and up to a maximum of Rs10,000 per day or ?25,000 per month for a beneficiary (the limits are subject to change as per regulatory guidelines).

The move will enhance ease of transactions and convenience for those who may have forgotten or don’t have cards.

Removing the need for a card to withdraw money could prevent frauds like skimming, card cloning, device tampering, etc.


The facility is a step toward digitizing banking.

Rise in digitalisation and adoption of digital banking has resulted in a rise in frauds and cyber crimes.

Thereby it is necessary to ensure that these systems are not just efficient but also protected from emerging cyber security risks.

It is proposed to enable customer authorisation through UPI while settlement of such transactions would happen through the ATM networks.

RBI will issue instructions to NPCI, ATM networks and banks shortly in this regard. 

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