The Apex Banking authority of India, i.e RBI, has been striding towards financial digitization. The Central bank is already working on CBDC and lately it has taken another major step towards financial digitization. A cardless withdrawal facility will soon be available at all ATMs in the country. Customer authorization will be done through the Unified Payment Interface (UPI) to facilitate card-less cash withdrawal across all banks and all ATM networks, while such transactions will be settled through the ATM network.
After the new announcement by RBI, more banks welcomed and expected to join this facility to provide the service to their cardholders. It is also expected that the regulator will soon issue detailed guidelines for the operation of the service to NPCI, ATM networks, and banks.
Current status of cardless withdrawal:

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On Friday, RBI Governor Shaktikanta Das said that at present only a few banks offer the facility to withdraw money from ATMs without a debit card. It is now proposed to provide a cardless cash withdrawal facility at all banks and ATM networks using UPI. This will help in preventing frauds like card skimming, and card cloning along with increasing the ease of users.
At present, only a few banks have the facility of card-less withdrawal, viz. SBI, ICICI, Axis, and Bank of Baroda. At present, the mobile banking app is used for cardless withdrawal. This facility also has a transaction limit of 10,000 to 20,000. Some banks, however, currently charge their customers additional transaction fees for this facility.
A move towards checking frauds:

RBI Governor Shaktikanta Das said that this service will expand the convenience of customers. Also, the incidents of fraud at ATMs will be less. This will also prevent card cloning, skimming, tampering with ATMs, etc. to a great extent. The central bank will issue detailed guidelines for this very soon to NPCI, ATM networks, and banks.
How to use this facility?
Although the banking regulator did not divulge the specific details on the procedure, a person having expertise said that ATMs soon will flash an option to withdraw cash using UPI. Once the user selects that option, he/she would have to enter the amount to withdraw cash. After this, a QR code would be generated on the ATM. It is here when the person scans the code through his UPI app and enters the UPI Pin following which the ATM will dispense cash.
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