Page-39 of Current Affairs - May, 2022

RBI: Cardless cash withdrawal facilities at all ATMs

The Reserve Bank of India (RBI) has directed all banks, ATM networks, and White Label ATM Operators (WLAOs) to provide their customers with the option of Interoperable Card-less Cash Withdrawal (ICCW) across all ATMs in the country.

How does this facility work?

For Card-less Cash Withdrawal transactions, the Unified Payments Interface (UPI) facility will be used for customer authorization and settlement will be through the National Financial Switch (NFS) or the ATM networks. For this, RBI asked the National Payments Corporation of India (NPCI) to facilitate the integration of UPI with all banks and ATM networks.

The withdrawal limits for ICCW transactions will be similar to ATM withdrawals. At present, cardless cash withdrawal through ATMs is offered by only a few banks like ICICI and HDFC.

What is the advantage?

This facility will ensure convenience for customers and will also reduce scams such as card skimming, card cloning, etc. as there is no need to use debit or credit cards.

How to withdraw cash without using the card?

For card-less cash withdrawal through ATMs, the user needs to request the bank to enable this facility.

To withdraw money using a QR code, the customers should choose the cardless withdrawal QR-UPI option at the ATM and enter the amount. Next users should scan the QR code on ATM using mobile apps like BHIM, GooglePay, PayTm, etc. The next step is to enter the pin. Finally, users should click on the cash option and collect the cash dispensed from the ATM.

To withdraw money using a code, Bank will send a unique 6-digit code to the registered mobile number of the user, which will be valid for up to six hours. The user should enter details like the registered mobile number, the temporary 4-digit code, the 6-digit code that is sent by Bank, and the withdrawal amount in the ATM. Once these details are authenticated, users can collect the cash.

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Delhi HC Ruling on Door-to-Door Ration Delivery scheme

The Delhi High Court (HC) recently scrapped a proposed scheme of the Delhi cabinet. The scheme was to supply rations at the doorstep of beneficiaries through government empanelled direct-to-home delivery agencies.

Who opposed the scheme and why?

In 2018, the Delhi cabinet approved a scheme called ‘Mukhya Mantri Ghar Ghar Ration Yojna’. But the scheme was opposed by Delhi’s Lieutenant Governor (LG). He said that the scheme may not achieve its stated objective of eliminating corruption as it only replaces old service providers with new ones. He also said that the Delhi government should take the approval of the Central government since the NFSA (National Food Security Act) is enacted by Parliament.

However, the Delhi cabinet decided to go ahead and notified the scheme in February 2021. But Centre objected to the name of the scheme. Due to this, the Delhi cabinet dropped ‘Mukhya Mantri’ from the name of the scheme and decided to go ahead.

What did Delhi High Court say?

The Delhi Ration Dealers Union moved to the Delhi High Court challenging the scheme, arguing that the scheme bypasses existing fair price shop (FPS) owners. The Centre also supported the petitions and held that the scheme is in contravention of the NFSA (National Food Security Act).

The Delhi High Court held that a Delhi government can offer delivery of food grains at the doorstep, but with its own resources. The court also held that the Delhi Cabinet should refer the matter to the President for decision as there is a difference of opinion with the Lieutenant Governor (LG).

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