No debit card? This way you can still withdraw money with your smartphone


RBI announced a new move Friday that will encourage a move to more secure methods of withdrawing funds. This new method does not require the use of a credit or debit card. This is a multi-track approach by the central bank. First, it reduces the chances of card skimming and the convenience of withdrawing money with the smartphone. Also Read – India made more than 7,422 crore digital transactions in FY22 alone

RBI Deputy Governor Rabi Sankar said in a statement: “We are introducing cardless cash withdrawals to bypass card skimming; the proposal is to initiate authentication via UPI. It can be used for withdrawals at a bank ATM, a third-party ATM or a White Label ATM. We are working out the system changes and instructions.” Also Read – RBI Sets Audit Guidelines for Paytm Payments Bank: Report

The use of credit and debit cards will not change much, despite the introduction of cashless withdrawals. Users can still withdraw money with their cards. They remain functional in restaurants and shops for payments. Due to the lack of a UPI ecosystem abroad, debit and credit cards will be relevant for payments outside the country. Also read – Do you want to move Paytm Payments Bank data to other countries? Founder responds to accusations

RBI Governor Shaktikanta Das said: “We will not stop issuing credit/debit cards because they have many other utilities; they are not only used for cash withdrawals, they can also be used in a restaurant, shop or for payments abroad. So credit and debit cards will be continued.”

Benefits of New Cardless Cash Withdrawal

Convenience: Withdrawing money without a card reduces the reliance on carrying debit or credit cards. All you need is the smartphone with the registered mobile number and a UPI ID.

Security: RBI has confirmed that the risks of card skimming will diminish with the implementation of this new plan. Users don’t have to worry about their ATM cards being skimmed and cloned. Previously, banks have switched to chip-based ATM cards to ensure security against skimming.

How does the new method work?

-To withdraw money without a card, you need a UPI ID. The transactions are verified via UPI.

-Once you enter the ATM, you have to choose the “Cashless withdrawal” option on the screen.

-The ATM screen will then show a QR code to be scanned within a UPI app.

-Then the user enters the UPI pin and the money comes out of the ATM

Note: This cardless withdrawal method is already available at a few banks such as ICICI and SBI. However, it will also be rolled out to other banks and it will also work with third-party ATMs.

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