Interoperable Card-less Cash Withdrawal (ICCW)

Context

  • The Reserve Bank of India (RBI) has asked all banks to provide customers with the option of Interoperable Card-less Cash Withdrawal (ICCW) at their ATMs.

About Interoperable Card-less Cash Withdrawal (ICCW)

  • All banks, ATM networks and WLAOs (White Label ATM Operators) may provide the option of ICCW at their ATMs.
  • NPCI has been advised to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks.
  • While UPI would be used for customer authorisation in such transactions, settlement would be through the National Financial Switch (NFS) / ATM networks.

    Interoperable Card-less Cash Withdrawal
    Photo Credit: Reuters
  • All other instructions related to Harmonisation of Turn Around Time (TAT) and customer compensations for failed transaction shall continue to be applicable.
  • The on-us / off-us ICCW transactions shall be processed without levy of any charges other than those prescribed under the circular on Interchange Fee and Customer Charges.
  • Withdrawal limits for ICCW transactions shall be in-line with the limits for regular on-us / off-us ATM withdrawals. All other instructions related to Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions shall continue to be applicable.
  • Cardless cash withdrawals are to be authenticated via UPI.
  • So, ATMs are expected to show an option for withdrawing cash using UPI. Once an user selects this option, they can input the amount to be withdrawn.
  • A QR code will be generated on the ATM. Users will then need to scan that code via their UPI app, and enter password to withdraw cash from the ATM.
  • Until now, only fund transfers between accounts were enabled via UPI. With this option, consumers can take cash out from ATMs without a card.
  • While UPI would be used for customer authorisation in such transactions, settlement would be through the National Financial Switch (NFS) / ATM networks.
  • Currently, ICICI Bank, Kotak Mahindra Bank, HDFC Bank and SBI allow cardless cash withdrawals for their users.

https://www.thehindu.com/sci-tech/technology/explained-how-will-cardless-cash-withdrawal-system-at-atms-work/article65314124.ece

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