Newest Banking Trend to Withdraw Cash from ATM without Debit Cards
As of the reports, Debit Cards will not be required to withdraw cash from ATMs and it is said to be completely card-less in the coming years. Banks will be soon employing a QR Code based cash withdrawal mechanism, wherein the use of ATMs.
The said latest process is said to be working based on QR codes, generated by your banking app and here we explain how the process works below :-
- You enter the ATM kiosk
- Open your banking app
- Generate a unique QR Code for cash withdrawal
- Show the QR Code at the teller machine, which will scan it
- Your cash comes out
While generating the QR Code, the banking app will also prompt you to select the denominations of currency which you need. The ATM Teller machine will read that, and give you the exact denominations you need.
Soon, other services such as demand draft, checkbook and more can be done, simply by using the QR Codes generated by the banking app.
This may take some time, as the ATM Teller machines will be required to equip with this new scanning mechanism. Once it is done, then the usage of debit cards will become obsolete, and all you need is your mobile and Internet to withdraw cash from ATMs.
Usage of QR Codes in Banking System :-
Since last few months, QR codes are being increasingly used for various purposes, and India Post Payments Bank is one of the first banks to use it extensively.
Account holders of India Post Payments Bank can now just scan, and get the cash, and they are not even required to hunt down an ATM.
They can visit the post office or ask the postman or Grameen Dak Sevak (GDS) to come down to their home. They will have a hand-held device which will scan the QR code, and the amount will be paid by them to the customer.
Since the QR Codes can be also scanned via smartphone, the process is more convenient, and cheaper as well, compared to the cost of generating a new debit card.
These functionalities and innovations using QR Codes are part of the Bharat QR platform, which was launched last year.