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Economy
Mahesh

11/04/22 13:43 PM IST

Cash Withdrawal via UPI

In News 
  • To encourage card-less cash withdrawal facility, the Reserve Bank of India (RBI)  proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the Unified Payments Interface (UPI).
Features 
  • Under the card-less cash withdrawal facility, a user can authenticate a transaction, and this is expected to add a layer of security and authentication to the transaction.
  • This will also prevent frauds happening due to skimming of card or card cloning.
  • This decision was made by the Monetary Policy Committee (MPC) of the RBI.
  • All banks have been given permission by the RBI to introduce cash-less cash withdrawals through ATMs.
  • At present, cardless cash withdrawal is offered by only a few banks in India through an on-us basis i.e. for their own customers at their own respective ATMs.
Importance of card less withdrawal
  • This mode will not only help in enhancing the ease of transactions but without the need for a physical card, it would help in preventing frauds like card cloning, card skimming, device tampering, etc.
UPI
  • Unified Payments Interface (UPI) has been developed by the National Payments Corporation of India (NPCI).
  • It is a real-time payment system that facilitates instant person-to-merchant (P2M) and inter-bank peer-to-peer (P2P) transactions.
  • The Reserve Bank of India regulates the UPI.
  • The interface helps in transferring funds between two bank accounts instantly via a mobile platform.
Source- Live Mint

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