You may now withdraw cash without using your debit or credit card under the UPI scheme from any branch of your bank. Reserve Bank of India (RBI) Governor Shaktikanta Das announced today that cardless cash withdrawal using the unified payment interface (UPI) has been extended and will be made available at all bank branches and ATMs, to prevent fraud transactions.
The RBI governor was addressing the first Monetary Policy Committee statement for the financial year 2022-2023.
Withdraw money using UPI
”At present, the facility of card-less cash withdrawal through ATMs is limited only to a few banks. It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the UPI,” said Das in his MPC statement.
”In addition to enhancing the ease of transactions, the absence of the need for a physical card for such transactions would help prevent frauds such as card skimming, card cloning, etc,” the RBI governor said.
So far, you could withdraw cash card-less from ATMs under a permitted mode of transaction offered by a few banks in the country on an on-us basis (for their customers at their own ATMs). When you withdraw money under the new provision, the settlement of the transaction will happen through the ATM networks, a statement on Developmental and Regulatory Policies said.
Bharat Bill Payment System
Another service called the Bharat Bill Payment System (BBPS) is an interoperable platform for bill payments, which has seen an increase in the volume of bill payments and billers over the years, informed the RBI governor.
To further facilitate greater penetration of bill payments through the BBPS and to encourage the participation of a greater number of non-bank Bharat Bill Payment Operating Units in the BBPS, the RBI proposes to reduce the net worth requirement of such entities from Rs 100 crore to Rs 25 crore.
The necessary amendment to regulations will be carried out shortly.
Users of BBPS enjoy benefits like a standardised bill payment experience, centralised customer grievance redressal mechanism, prescribed customer convenience fee, etc.
BBPS is an interoperable platform for bill payments and the scope and coverage of BBPS extend to all categories of billers who raise recurring bills.
There has not been a corresponding growth in the number of non-bank Bharat Bill Payment Operating Units, the RBI noted.
Repo, reverse repo
Meanwhile, the central bank’s six-member MPC voted unanimously to retain the key policy rate, called repo, at four% and the reverse repo rate was also unchanged at 3.35%.
Repo is the rate at which the central bank lends short-term funds to banks, while the reverse repo is the rate at which the central bank borrows short-term funds from banks. The Monetary Policy Committee also retained the policy stance as ‘accommodative’ indicating that the rate-setting body is focused on boosting economic growth.