Bank of IndiaPublic sector lender Bank of India is introducing UPI QR based cash withdrawal service through its ATM machines across the country, instead of using a debit card to withdraw cash.

The technology will be powered by AGS Transact Technologies (AGS), end-to-end cash and digital payment solutions and automation technology company. Bank of India account holders can withdraw cash from the teller machines by scanning a QR code on the machine’s screen as the solution enables the use of Unified Payments Interface (UPI) platform for the process.

This will make cash withdrawal faster and more secure and will save consumers from card skimming or ATM pin compromise, the bank said. The process will provide seamless transaction flow, without any break as it does not require OTPs (one-time passwords) even in case of multiple withdrawals.

“We believe providing access to cash using QR will provide (the) requisite push to the adaption of QR form factor. Once it becomes interoperable the usage will increase multifold. This solution also provides the next level of security for ATM transactions as there is no requirement of Card and PIN,” said G Padmanabhan, Chairman, Bank of India.

Bank of India will roll out the service across all its ATMs pan India over next three to six months, it said in a statement.

“…There are several benefits for banks as well. For banks planning to deploy this on their ATM networks, there is no major investment required as it is possible to offer the service by making a small upgrade to the existing software in the ATMs. The greater agenda is Digitising India as consumers will use mobile banking more frequently,” said Ravi B. Goyal, CMD, AGS Transact Technologies Limited.

The bank has also approached National Payments Corporation of India (NPCI) to make the solution interoperable in order to make the solution available to customers of other banks.

NPCI is an umbrella organisation for operating retail payments and settlement systems in India.

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by Krishna V Kurup
Senior Market Analyst at IBS Intelligence
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