With the technological revolution across the globe, digitalization has gained prominence among the people. Such an example of digitalization is cardless cash withdrawal, which was launched in the wake of the Covid -19 pandemic. But, in a recent monetary policy meeting on 8th April 2022, the RBI has proposed interoperability in the withdrawal of cash without a debit card in all ATMs, irrespective of banks, using the new UPI feature. But, the major question that occurs here is how to withdraw cash without a debit card?
And, why is such action initiated? Who will this new scheme serve? How to go for cardless cash withdrawal? This article will take you through the monetary policy meeting held on 8th April 2022 and will uncover all the details about how to withdraw cash without a debit card. So, without further ado, let’s dive straight into it!
How To Withdraw Cash Without A Debit Card
In the words of Shaktikanta Das, the Governor of RBI, this facility of going all digital and providing cash withdrawal facility without a card through ATMs is only available to a few banks such as ICICI Bank, Kotak Mahindra Bank, etc. But, with the introduction of a new scheme, all ATMs will have the option of withdrawing the cash without a debit card, through the UPI feature!
According to RBI’s statement on Developmental and Regulatory Policies, separate instructions for cardless cash withdrawal will be sent to respective banks, ATMs, and NPCI soon!
Dilip Modi, the founder of Spice Money said that while some banks already have the facility of withdrawal of cash without debit cards, RBI Governor has proposed that from now on, all banks and ATMs will have the feature of cardless cash withdrawal, through the UPI. He also stated that with digitalization, the dependence of people on mobile and the internet has increased manifolds. In such a situation, it is a pleasure to announce that now people can withdraw cash in their comfort, without carrying a debit card!
Who Will This New Scheme Benefit?
According to the Governor of RBI, the cardless cash withdrawal was introduced in the wake of the Covid-19 pandemic. Few banks such as ICICI and others had the feature of cash withdrawal without using the card. But, the process was quite lengthy. On top of that, there was a service fee of Rs.25 per transaction, and money restrictions were imposed by certain banks.
But, according to the RBI’s Deputy Governor, T. Rabi Shankar, the central bank is working on these consumer issues and hopefully, innovations would be introduced, in favor of the customers within 2-3 months!
Additionally, withdrawal of cash without a debit card would also reduce debit card fraud like card scamming and card cloning to a large extent. People also do not need to carry their debit cards to their ATMs for withdrawal of cash. All these factors will result in people withdrawing their cash at their comfort through UPI, without being hindered by a debit card.
Also Read – The Delhi Metro Contactless QR Ticket
How To Go All Cardless – The New Scheme Of NCR
According to a new concept of NCR, an ATM-making firm, now people can withdraw cash without a debit card! While more than 1000 ATMs have been digitalized to feature this new option of cardless cash withdrawal, according to the words of NCR, soon other ATMs will also be modernized to launch this new scheme so that more people can withdraw their cash in their comfort.
This section will mention the steps on how to withdraw cash without a debit card through the new UPI feature.
Step 1: Open any UPI app such as Gpay, Paytm, BHIM, etc, and then scan the QR code which flashes on the ATM screen.
Step 2: After successful scanning of the QR code, enter the amount you wish to withdraw.
Step 3: In step 3, click on the proceed button. Then, the machine will ask you to put your UPI PIN.
Step 4: After successful authorization, you can withdraw cash successfully from the ATM.
It is to be noted that the request for cardless cash withdrawal will be valid for the next 24 hours only, from the time the request was submitted, after which the request will be treated as invalid!
The Negative Side Of Cardless Cash Withdrawal
Sivaji Thapliyal, lead analyst at YES Securities warns that extreme usage of cardless cash withdrawal will negatively impact debit card usage as more people will opt for cardless cash withdrawal. Additionally, the usage of credit cards and wallets will also reduce manifolds.
Conclusion – An Era Of Digital Modernisation
While experts warn that the usage of debit cards may go down, Shaktikanta Das has assured everyone that the issuance of debit cards would not cease. According to Anand Bajaj, founder and CEO of PayNearby, the issuance of debit cards might not reduce in the coming years!
The RBI has also announced that people can now opt for withdrawal of cash without a debit card and without the usage of the internet on their cell phones. The new step of RBI will surely open hopes for the not so economically stable population, who still cannot afford an internet connection, and will also increase digitalization across the country.
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