No card, no swiping, no problem if you want to withdraw cash in India, thanks to ATM manufacturer, NCR Corporation. The company has developed the first UPI-enabled interoperable cardless cash withdrawal ATM, in association with National Payments Corporation and City Union Bank, according to a report in LiveMint.

The solution was installed in a new facility with the help of City Union Bank, which updated its 1500 ATMs to allow dynamic QR code-based interoperable cardless cash withdrawals. Customers can withdraw cash using a mobile device with any UPI-enabled app such as GPay, BHIM or Paytm. No card is needed. A user just scans the dynamic QR code on the screen with a mobile device and authorizes a cash withdrawal. To make the transactions more safe and secure, the dynamic QR code will constantly be changed

At present, the withdrawal limit is capped at ₹5,000 ($68.23 US) and according to a bank spokesperson, since it is UPI-based, it doesn't require additional regulatory permission as it is an extension of the UPI app.

NCR upgraded the existing software to allow this mode of transaction on existing ATMs of City Union Bank. There is no hardware upgrade or change needed, and from a security perspective, fraudsters can't skim a card since the transaction is based on a dynamic QR code. The QR codes can't be copied because they change with each transaction, which is the reason it's referred to as a "dynamic" QR code.

With the dynamic QR code-based interoperable cardless cash withdrawal facility, one can take out money from any ATM of any bank, if the ATM has been upgraded. With this kind of transaction, the ATM becomes more secure and the mobile device becomes the digital wallet.

This is a true digital transaction, that not only is interoperable, but doesn't depend on any card. And in terms of Visa and Master, they will continue to earn their fee income since all transactions are routed through the NFS platform of the RBI, but if its adoption gains popularity among banks, there may not be a need to print debit cards any longer.

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