Monday, October 3, 2022

Card-less cash withdrawal across all banks’ ATMs: RBI

In a bid to check fraud, the Reserve Bank on Friday decided to permit all banks to introduce card-less cash withdrawal through ATMs.
Currently, card-less cash withdrawal through ATMs is a permitted mode of transaction offered by a few banks in the country on an on-us basis (for their customers at their own ATMs).
Major lenders like SBI, ICICI Bank and HDFC Bank are offering this facility, especially through their card-less transaction enabled ATMs. To use the facility, a customer has to register on the app or website of the respective bank and initiate a card-less cash withdrawal transaction.
Following this, the customer gets a PIN which is required to be punched in the system for withdrawal.
With the latest RBI announcement, the card-less transaction can now be done at all ATMs irrespective of the bank.
“It is now proposed to make card-less cash withdrawal facility available across all banks and ATM networks using the UPI. 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,” RBI Governor Shaktikanta Das said while the announcing the bi-monthly monetary policy review.
It is proposed to enable customer authorisation through the use of Unified Payments Interface (UPI) while settlement of such transactions would happen through ATM networks, a statement on Developmental and Regulatory Policies said.
Separate instructions would be issued to NPCI, ATM networks and banks shortly, it said.
With regard to Bharat Bill Payment System (BBPS), he said, it is an interoperable platform for bill payments, which has seen an increase in the volume of bill payments and billers over the years.
To further facilitate greater penetration of bill payments through BBPS and to encourage participation of a greater number of non-bank Bharat Bill Payment Operating Units in BBPS, it is proposed to reduce the net worth requirement of such entities from Rs 100 crore to Rs 25 crore.
The necessary amendment to regulations will be carried out shortly.
Users of BBPS enjoy benefits like standardised bill payment experience, centralised customer grievance redressal mechanism, prescribed customer convenience fee, etc.
BBPS is an interoperable platform for bill payments and the scope and coverage of BBPS extends to all categories of billers who raise recurring bills.
It is observed that there has not been a corresponding growth in the number of non-bank Bharat Bill Payment Operating Units (BBPOUs).
Observing that payment systems play a catalytic role in facilitating financial inclusion and promoting financial stability, the statement said, maintaining the safety and security of these systems is a key objective of RBI.
With greater adoption of digital payment modes, it is important to ensure that payment system infrastructures are not only efficient and effective but also resilient to conventional and emerging risks, specifically those relating to cyber security, it said.
“To ensure that our payment systems remain resilient to conventional and emerging risks, specifically those relating to cyber security, it is proposed to issue guidelines on Cyber Resilience and Payment Security Controls for Payment System Operators,” he said.

Rupee rises by 10 paise to 75.93 against USD amid RBI maintaining status quo
Mumbai, Apr 8 (PTI): The rupee appreciated 10 paise to settle at 75.93 against the US dollar on Friday, amid the Reserve Bank of India maintaining status quo on the benchmark lending rate.
Announcing the monetary policy, RBI Governor Shaktikanta Das said the Indian economy has large forex reserves and that it stands ready and resolute to defend the economy.
Meanwhile, benchmark 10-year bond yield jumped to 7.06 per cent, the highest since June 2019 as the RBI raised the forecast for the headline consumer-price inflation to 5.7 per cent.
At the interbank forex market, the domestic unit opened at 75.99 against the US dollar and touched an intra-day high of 75.70 and finally closed at 75.93, registering a rise of 10 paise over its previous close.
On Thursday, the rupee had declined 19 paise to close at 76.03.
“The rupee underperformed among Asian currencies after RBI kept interest rate unchanged and announced measures to remove surplus liquidity from the system,” said Dilip Parmar, Analyst, HDFC Securities.
Parmar further said that “they also revised down the growth and raised the inflation number for the current year on higher commodity prices. In short, the central bank has paved the way for the removal of the accommodative stance and higher rate going ahead.”
“Domestic equities rallied while rupee erased most of its gain after central bank policy decisions and the benchmark 10-year bond yields surged to 7.06 per cent, the highest since 11 June 2019.
In the near-term, spot USDINR is expected to trade in the range of 76.20 to 75.70,” Parmar noted.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, “The Rupee appreciated against the US Dollar on Friday as India’s Central Bank hinted at exiting its easy monetary stance. However, crude oil prices again rebounded this Friday afternoon session and capped appreciation for the local unit.”
On the inflation front for the fiscal year that started April 1, the RBI raised the forecast for the headline consumer-price inflation to 5.7 per cent, from 4.5 per cent earlier.
On a weekly basis, the rupee depreciated by 19 paise against the US dollar.
“For the meantime, the local unit has ended the week on a weaker note against the dollar tracking a sharp sell-off in US Treasuries amid expectations of aggressive withdrawal of policy support by the Federal Reserve,” Iyer added.
The US Dollar strengthened towards 100 levels for the first time in nearly two years on Friday evening trade in Asia, supported by the prospect of a more aggressive pace of Federal Reserve interest rate hikes.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.12 per cent up at 99.87.
This is the 11th time in a row that the Monetary Policy Committee (MPC) headed by Das has maintained status quo and left the benchmark lending rate unchanged at 4 per cent.
RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020 in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.
On the domestic equity market front, the 30-share BSE Sensex ended 412.23 points or 0.70 per cent higher at 59,447.18, and the broader NSE Nifty surged 144.80 points or 0.82 per cent to 17,784.35.
Brent crude futures, the global oil benchmark, rose 0.99 per cent to USD 101.58 per barrel.
Foreign institutional investors remained net sellers in the capital market on Thursday as they offloaded shares worth Rs 5,009.62 crore, according to stock exchange data.