The Reserve Bank of India (RBI) has decided to allow all banks to introduce cardless cash withdrawal through ATMs.

Currently, this facility is offered by a few banks on an on-us basis (for their customers at their own ATMs).

“It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the 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, etc,” RBI Governor Shaktikanta Das said while announcing the bi-monthly monetary policy review on Friday.

It is proposed to enable customer authorisation through the use of Unified Payments Interface (UPI) while settlement of such transactions would happen through the ATM networks, a statement on Developmental and Regulatory Policies said.

Separate instructions would be issued to NPCI, ATM networks and banks shortly, it said.

The cardless cash withdrawal facility enables individuals to withdraw cash without using any debit card at ATMs. The request can be initiated for a minimum withdrawal of  Rs 100 per transaction and up to a maximum of Rs10,000 per day or Rs 25,000 per month for a beneficiary (the limits are subject to change as per regulatory guidelines).

With regard to Bharat Bill Payment System (BBPS), Das said that it is an interoperable platform for bill payments. The scope and coverage of BBPS extends to all categories of billers who raise recurring bills.

Das said that net worth requirement for Bharat Bill Payments System Operating Units has been reduced to Rs 25 crore from Rs 100 crore. This will facilitate greater penetration of bill payments through the BBPS and encourage participation of a greater number of non-bank Bharat Bill Payment Operating Units in the BBPS.

The necessary amendment to regulations will be carried out shortly.

Users of BBPS enjoy benefits like standardised bill payment experience, centralised customer grievance redressal mechanism, prescribed customer convenience fee, etc.

“To ensure that our payment systems remain resilient to conventional and emerging risks, specifically those relating to cyber security, it is proposed to issue guidelines on Cyber Resilience and Payment Security Controls for Payment System Operators,” Das said.