Bank of India Allows Card-less Withdrawals At Its ATMs

Bank of India (BoI) has adopted a new methodology that allows people to withdraw cash at an ATM without needing a Debit / Credit card.

This week BoI unveiled an interesting and convenient approach to banking by allowing its customers the freedom to send money to other people and then allow the receivers to withdraw the same from their nearest Automated Teller Machines (ATM) without needing a Debit / Credit card. Though this system appears to be quite risky, the Bank has adopted multiple check–points to ensure deposit and withdrawal are secured and authenticated.

How does the transfer and withdrawal work? Under this facility, a Bank of India customer can send money to anyone using regular Bank of India ATMs or through Internet Banking. The primary interconnecting medium will be the receiver’s mobile number.

The sender has to provide the receiver’s Mobile Number, a special sender code as well as the amount to be transferred. The bank has allowed these details to be either transmitted via a simple SMS or via Internet Banking. The beneficiary will then be communicated about the transfer by the bank. The person then has to merely approach any Bank of India ATM, submit the sender code & collect the cash.

Currently, not all BoI ATMs are supported. The receiver will have to approach a BoI ATM that has the Instant Money Transfer (IMT) Facility enabled. However, the bank has confirmed that the facility will cover its entire ATM base currently numbering 4100 within 20 days.

BoI is doing this to enhance the ‘Financial Inclusion’ of the country’s unbanked population. The Reserve Bank of India (RBI) recently allowed card-less cash withdrawal specifically to facilitate financial inclusion in the country. Interestingly, BoI also has the NRI community in its sights. Presently these people employ expensive Money Transfer facilities, but BoI technique will nearly eliminate the high ‘Processing Fees’.

Though not immediately clear, from a security view–point, BoI should mandate receivers to provide proof of identity as well. The facility isn’t restricted only for BoI customers. Being card–less, the IMT facility is extended to ordinary citizens who don’t have any bank accounts.

Source | livemint

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