As per the newest reports coming in, debit cards will no longer be needed at ATMs – one can now withdraw cash simply by scanning a QR code.
Read on to find out how this new system works!
Debit Cards Will No Longer Be Needed To Withdraw Cash?
The first ever interoperable cardless cash-withdrawal (ICCW) solution has been launched by NCR Corporation, the maker of automated teller machines (ATMs). This solution is based on the Unified Payments Interface (UPI) platform.
In 2019, we had reported to you about the Bank of India introducing a similar system that withdraw cash from an ATM using a QR code. This does not require ATM cards to withdraw cash anymore, thereby promoting card-less cash withdrawals.
For this new facility, NCR will be collaborating with City Union Bank, as confirmed by the lender. In addition to that the bank has already upgraded its 1500 ATMs to be implemented with QR code-based interoperable cardless cash withdrawal facility.
As per Navroze Dastur, managing director for India and regional vice-president for South East Asia at NCR Corporation, this is definitely one step ahead from using the UPI apps on a cell phone but without any ATM cards.
N Kamakodi, managing director of City Union Bank has stated, “We have partnered with NCR to deliver ICCW solution that will enable us to deliver this next-generation solution to our customers which will allow them card-less cash withdrawal using UPI QR code at our ATMs.”
How Will Cash Debit Through QR Code?
Once the new facility is implemented, customers will be able to withdraw cash through their mobile and will not be dependent on any UPI-based apps such as BHIM, Paytm, GPay etc. This also means that we will no longer be needed to carry any ATM cards when we visit the UPI enabled ATMs.
The QR code will be scanned on the screen customer and the cash withdrawal will be authorised through the mobile phone. The QR code will also be changed constantly in order to ensure the safety and security of the transactions.
Also the withdrawal limit has been limited at Rs.5000 as of now. As per Dastur, there will not be any need for additional regulatory permission as the facility is UPI-based and an extension of the UPI app.
“What we have done is that we upgraded the existing software to allow this mode of transaction on existing ATMs of City Union Bank. There is no hardware upgrade or change,” he mentioned.
Dastur also revealed that NCR and National Payments Corporation (NPCI) Are already in the discussions with some public and private sector banks; The discussions are in the final stage as well. A formal association will also be announced in the recent futur formal formal association will also be announced in the recent future e.