What changed
RBI has directed all scheduled commercial banks, cooperative banks, payment banks, small finance banks, NPCI, ATM networks, and white label ATM operators to enable Interoperable Card-less Cash Withdrawal (ICCW) at their ATMs. UPI will handle customer authorization, while settlement will use NFS or ATM networks. No additional charges beyond the existing interchange fee structure are allowed for on-us or off-us ICCW transactions.
What it means for you
Banks and ATM operators must now support UPI-based card-less withdrawals, which could reduce dependency on physical cards and lower operational costs. This move enhances customer convenience and interoperability, but requires technical integration with UPI and NFS. Banks must ensure compliance with existing TAT and compensation norms for failed transactions.
What you must do
- Integrate UPI authorization with your ATM network and NFS for ICCW transactions.
- Update ATM software and backend systems to support card-less cash withdrawals.
- Ensure no additional charges are levied on ICCW transactions beyond prescribed interchange fees.
- Align ICCW withdrawal limits with existing on-us/off-us ATM withdrawal limits.
- Maintain compliance with harmonized TAT and customer compensation rules for failed transactions.
Who it affects
Scheduled commercial banks including RRBs, Urban cooperative banks, State and district central cooperative banks, Payment banks, Small finance banks, National Payments Corporation of India (NPCI), ATM networks, White label ATM operators
What is the authorization method for ICCW transactions?
UPI is used for customer authorization, while settlement is processed through NFS or ATM networks.
Are there any additional charges for ICCW transactions?
No, on-us and off-us ICCW transactions must be processed without any charges beyond those prescribed under the circular on Interchange Fee and Customer Charges.
What are the withdrawal limits for ICCW?
Withdrawal limits for ICCW transactions are the same as those for regular on-us/off-us ATM withdrawals.