The Reserve Bank of India decided on Friday to allow all banks to adopt card-less cash withdrawals through ATMs in an effort to combat fraud.

Currently, cardless cash withdrawals using ATMs are an allowed mode of transaction offered “on-us basis” (for their customers at their own ATMs).

"It is now suggested to use the UPI to make card-less cash withdrawals available across all banks and ATM networks." The lack of a physical card for such transactions will help avoid frauds such as card skimming, card cloning, and other forms of fraud," RBI Governor Shaktikanta Das said while announcing the bi-monthly monetary policy review.

Customers would be able to authorise transactions using the Unified Payments Interface (UPI), with settlement taking place through ATM networks, according to a statement on Developmental and Regulatory Policies. Separate instructions would be sent to NPCI, ATM networks, and banks in the near future, according to the statement.

He said that the Bharat Bill Payment System (BBPS) is an interoperable bill payment network that has experienced an increase in the number of bill payments and billers over time.

It is proposed to reduce the net worth requirement of non-bank Bharat Bill Payment Operating Units from Rs 100 crore to Rs 25 crore in order to facilitate greater bill payment penetration through the BBPS and to encourage the participation of a greater number of non-bank Bharat Bill Payment Operating Units in the BBPS.

MPC Live: Shaktikanta Das prepares market for a rate hike in near future

RBI keeps repo rate unchanged at 4pc for 11th consecutive time

RBI MPC Live: Inflation pegged at 5.7pc in 2022-23, says RBI governor