Mumbai: In a bid to ensure interoperability of card-less cash withdrawal at ATMs and to curb frauds, the Reserve Bank of India (RBI) on Friday has allowed all banks to use the facility of using the unified payments interface (UPI).
At present, the facility of card-less cash withdrawal through ATMs is limited only to a few banks.
"It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the UPI," RBI Governor Shaktikanta Das said while unveiling the first bi-monthly policy review for the current fiscal.
He further said that the move would help prevent frauds like card skimming and card cloning, among others.
"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," he said.
In a post policy press conference, Das clarified that this move will not have any impact on issuance of credit cards or debit cards in the future as these instruments have other utilities as well.
Meanwhile, the RBI has also set up a committee to review customer service standards in RBI regulated entities.
Das noted that the Reserve Bank has over the years taken a number of measures to enhance consumer protection including laying down regulatory frameworks on customer service, internal grievance redress and the Ombudsman mechanisms.
"In view of the transformation underway in the financial landscape due to innovations in products and services, deepening of digital penetration and emergence of various service providers, it is proposed to set up a committee to examine and review the current state of customer service in the RBI regulated entities, adequacy of customer service regulations and suggest measure to improve the same," he added.
Further, to ensure that payment systems remain resilient to conventional and emerging risks relating to cybersecurity, the apex bank has also proposed to issue guidelines on cyber resilience and payment security controls for payment system operators.
To ensure greater penetration of bill payments through the Bharat Bill Payment System (BBPS) and to encourage participation of a greater number of non-bank units in the BBPS, the RBI has decided to reduce the net worth requirement of such entities from Rs 100 crore to Rs 25 crore. (UNI)
