RBI asks banks to ensure card-less cash withdrawal at ATMs

Business

At present, the facility of card-less cash withdrawal through ATMs is limited only to a few banks.

At present, the facility of card-less cash withdrawal through ATMs is limited only to a few banks.

The RBI has proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the unified payment interface (UPI).

“In addition to enhancing ease of transactions, the absence of the need for physical card for such transactions would help prevent frauds such as card skimming, card cloning,” RBI Governor Shaktikanta Das announced this as an additional measure.

At present, the facility of card-less cash withdrawal through ATMs is limited only to a few banks.

To further facilitate greater penetration of bill payments through the Bharat Bill Payment System (BBPS), and to encourage participation of a greater number of non-bank Bharat Bill Payment Operating Units in the BBPS, it has proposed to reduce the net worth requirement of such entities from ₹100 crore to ₹25 crore.

To ensure that India’s payment systems remain resilient to conventional and emerging risks, specifically those relating to cybersecurity, the RBI has proposed to issue guidelines on Cyber Resilience and Payment Security Controls for Payment System Operators.

Separately, for the benefit of those availing of individual home loans the RBI has decided to continue with the risk weights for all new individual housing loans sanctioned up to March 31, 2023.

The risk weights for Individual housing loans were rationalised in October 2020 by linking them only with the Loan to Value (LTV) ratio for all new housing loans sanctioned up to March 31. 2022.

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