Do not have a bank a/c? You may still get to draw money from ATM

In what could be a game-changer in a country where less than 40% of the population have bank accounts, the RBI is mulling ways to transfer funds to those who does not have bank accounts through ATMs.

In what could be a game-changer in a country where less than 40% of the population have bank accounts, the Reserve Bank of India (RBI) is mulling ways to transfer funds to those who does not have bank accounts through automated teller machines (ATMs).

“We have recently approved the in-principle setting up of a payment system, which will facilitate fund transfer from bank account holders to those without accounts through ATMs,” RBI governor Raghuram Rajan said at the Nasscom India Leadership Forum in Mumbai on Wednesday.

“Essentially, the sender can have the money withdrawn from his account through an ATM transaction,” he said.

“The system will take care of necessary safeguards of customer identification, transaction validation etc, he added.