ATM Cash Withdrawal Is Now Possible With QR Code

ATM Account holders now makes their cash withdrawal from ATMs without using any card by just scanning QR codes from their mobile phones.
ATM Cash Withdrawal Is Now Possible With QR Code
ATM Cash Withdrawal with QR Code

ATM cash withdrawal will soon be possible by using a QR code. Account holder now makes their cash withdrawal from ATMs without using any card by just scanning QR codes from their mobile phones. The Reserve Bank of India (RBI) has provided a statement to banks and ATM operators to provide an interoperable cardless withdrawal option at ATMs.

UPI Facility will be Available in all Banks Along with ATM Networks

UPI Facility in Banks

The RBI said in a circular that the National Payments Cooperation of India (NPCI) will facilitate the integration of the Unified Payments Interface ( UPI) platform in all banks along with ATM networks.

National Financial Switch (NFS), which forms the backbone of ATM networks in the country, would continue the settlement that enables customer authentication through the UPI mode.

Several Banks are Currently Offering Cardless Withdrawals

Cardless Withdrawal

The majority of the other restrictions, including those governing withdrawal limits at third-party ATMs, would be analogous to standard card withdrawals at ATMs. Several banks are currently offering cardless withdrawals to their customers using the bank's mobile app. The new framework establishes a uniform standard, allowing consumers to withdraw funds from any bank.

The RBI does not believe that the cardless withdrawal facility will eliminate the necessity for cards. According to RBI officials, this is an extra choice as well as a security element. Many phishing incidents have occurred, with criminals either cloning cards from data or installing devices over the card slot at an ATM to read the card information. Such skimming frauds will be eliminated by UPI.

Banks are Facing Some Issues with Card Supply Due to the Global Chip Shortage

Customers have easily taken the advantage of this new system as if there is a delay in their card issuance, they would not be inconvenienced. However, as of now, banks are facing some issues with card supply due to the global chip shortage. This QR code withdrawal would be useful if large-scale re-carding was required in the event of a data breach, as has happened in the past with several institutions.

ATM Manufacturer Stated that the Implementation Would Not Necessitate Any Hardware Modifications

Speaking to TOI, the CEO of an ATM manufacturer stated that the implementation would not necessitate any hardware modifications and would simply necessitate a software upgrade. "It will not be like an app upgrade on a mobile phone; while the program may be sent through remotely, some testing on the client-side will be required," he explained.

This New Feature Would Slightly Raise the Cost of ATM Transaction For Banks

According to ATM operators, while clients will not be charged any additional fees, the new feature would slightly raise the cost of ATM transactions for banks. "Previously, when an account holder withdrew cash from an ATM at his bank, the transaction took place within the bank's network. "Now, even for own-bank transactions, one leg of the transaction must travel to the UPI platform," he explained.

Debit cards, according to bankers, will stay significant since they are used for more than simply cash withdrawals. While QR code purchases are becoming more popular for in-store payments, cards are still utilized for many transactions. More than half of all card transactions in India are currently 'card not present.'

These are cards seen on e-commerce websites, utility websites, and mobile apps. A top banker stated that they will enable QR code withdrawals from their banking app as a security measure. This would increase the use of their digital platforms. PhonePe, Google Pay, and Paytm presently handle the majority of UPI transactions.

ATM Cash Withdrawal Is Now Possible With QR Code
Be Ready for Cardless Withdrawals from ATMs

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