How cardless cash withdrawal at ATM works? But first know your transaction limit, fee as well - SBI vs ICICI Bank

The banking system is getting more advanced and flexible since the demonetisation drive. Now the latest trend is that you do not even have to carry your debit card or credit card to remove money from ATMs. Recently, SBI launched a ‘YONO Cash’ for cardless cash withdrawal at ATMs. Other lenders like ICICI Bank also allows such services but in a different manner. But the real question is, the trend of cardless cash withdrawal. Not many are familiar with such features, especially in rural areas. Not only this, there are also cardless cash withdrawal limit and transaction fees as well which are levied by the mentioned banks. Thereby, if you are planning to do a cardless cash withdrawal at ATM, then here’s a list of pointers you must note. 

How does cardless ATM withdrawal work?

One of the major advantages of using cardless cash withdrawal service is that it eliminates the need to carry a debit or credit card. This service can be used for either sending money to someone, or remove cash from ATM. In both cases, all you need is your smartphone, which will help you in notifying the status of the transaction. 

Generally, the procedure works like this. For sending money, you will have to indicate the amount you want to send using recipient’s phone number, bank or ATM which will conduct the transaction. 

Now the person receiving this money, will get a message on his or her cell phone which will have amount information, ATM direction and a password. Therefore, it is important, the recipient uses one of the ATM affiliated with this service. It is not necessary that, the recipient must be a customer of that respective bank. 

Although sending and withdrawing money does not usually carry cost to the person who is receiving it. But the person who sends the money will be liable to pay a certain fee which depends and varies from bank to bank. 

This is what SBI and ICICI Bank are offering! 

SBI! 

With SBI’s Yono cash, a customer can initiate the cash withdrawal process on the YONO app and set a six digit YONO Cash pin for the transaction.

They will also get a six digit reference number for the transaction on their registered mobile number via SMS. Further, the cash withdrawal has to be completed within the next 30 minutes at the nearest YONO Cash point using both PIN and the reference number received.

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Now here, SBI is helping a customer withdraw cash from ATM. SBI did not mentioned any cost using this cardless cash withdrawal service using Yono cash, but the bank already has a instant money transfer (IMT) facility as well. 

The IMT service includes sending and receiving of money facility. At SBI, a customer can transfer money instantly anywhere to anyone, all he or she needs is to add beneficiary’s  mobile number, name and address. This transaction can be carried only on SBI ATMs, and the beneficiary will have to remove money in a single transaction which means no partial withdrawals are allowed. 

Under this IMT service, a customer can send minimum Rs 100 and maximum Rs 10,000 per transaction. This is subject to the monthly cap of Rs. 25,000 per month per beneficiary will be applied automatically by the system.

The sender here will be charged with Rs 25 nominal fee per transaction at source. Meanwhile, no charges are levied on beneficiary end.

ICICI Bank! 

Similar like SBI, ICICI Bank also allows customers to send cash from their bank account to anyone with a valid mobile number across India. A beneficiary can withdraw amount at specified ICICI Bank ATM. 

But at ICICI Bank, a sender who is registered for Corporate Internet Banking (CIB) are the only ones allowed with this service. In case of beneficiary, it is not needed that he or she must be ICICI Bank customer. 

Here also, the maximum transaction amount per transaction is Rs 10,000. Also, the maximum amount per beneficiary cannot exceed Rs 25,000 in a month. 

The bank levies Rs 25 charge inclusive of service tax on every cardless transaction. If you are making a bulk cardless withdrawal, then ICICI Bank will charge Rs 25 inclusive of service tax for every record uploaded. For example, if there are 10 records in 1 bulk upload, the total charges will be Rs 250.

Notably, this transaction at ICICI Bank is valid only for one day. 

Hence, cardless card transaction has definitely changed the way a money is exchanged or removed from ATM. They in fact, also almost act like other services such as NEFT, RTGS, IMPS. The only difference is that, cardless cash withdrawal are more flexible and can be done anytime with few charges.