RBI (Reserve Bank of India) in its monetary policy meeting that was held on April 8, 2022, proposed to enable the ability in cardless withdrawal of cash at all banks and ATMs by using UPIs. This proposal of UPI cash withdrawal was stated by the RBI governor Shaktikanta Das. He said,
As per the statement of RBI on Developmental and Regulatory Policies, that was released on April 8, 2022,
UPI Cash Withdrawal To Go Cashless
In April last year, NCR Corporation released the first IICCW (interoperable cardless cash-withdrawal) solution that was based on the UPI platform. This UPI cash withdrawal facility enables users to withdraw cash using their mobile with any UPI supported application like Paytm, GPay, BHIM, etc. There is no requirement to swipe or carry a card while getting into the UPI-enabled ATMs. A user is required to scan the QR code on the screen and authorize UPI cash withdrawal SBI and other banks via his or her mobile phone.
UPI Cash Withdrawal At Banks
Many banks at this time provide the facility of cardless cash withdrawals at their own ATMs. As per the HDFC Bank website,
Also, HDFC Bank users should note that a successful UPI cash withdrawal request will be valid for 24 hours from the time it was submitted. After 24 hours, the request will be inverted to the account that was debited by the initiator.
A cardless withdrawal of cash transactions enables the sender to send money directly from a Bank account to anyone in India who has a valid mobile phone number. Without having to use a Debit Card or an ATM, the beneficiary can withdraw the funds from the ATM. According to Dilip Modi, Founder, of Spice Money,
Talking about the UPI cash withdrawal proposal by RBI, he further said,
On Friday, the RBI (Reserve bank of India) released a mandate that proposed UPI cash withdrawal with which the users can go cardless in the ATMs and also in the banks. This was done to increase the convenience of the users and plug cases of fraud. The regulator is expected to soon issue the more detailed guidelines to NPCI, banks, and ATM networks for operation. Once the proposal is operational you can search for a UPI enabled ATM near me.