New Cash Withdrawal System Allows Bank Account Holders to Withdraw from Nearby Shops Using Smartphone

Now, you no longer need to visit ATMs or bank branches with cheques to withdraw cash, as you can now withdraw it from nearby shops using just your smartphone.

Here's How it Will Work:

To withdraw cash from your neighborhood, the customer has to send a withdrawal request on their mobile banking app, and a One-Time Password (OTP) will be generated by the bank. The customer can then take this OTP to any nearby merchant partner, who will enter the OTP into the system on their smartphone and process the request. After approval by the bank, the shopkeeper will hand over the cash to the customer.

Just Three Steps to Withdraw:

1. Send a cash withdrawal request on the mobile banking app & generate OTP.
2. Give the OTP to the merchant partner, who will enter it into an app on their phone.
3. After approval from the bank, the shopkeeper will hand over the cash to the customer.

This new platform was launched by the Chandigarh-based fintech startup Paymart India Pvt Ltd. Paymart India Pvt Ltd has already tied up with IDBI Bank, Indian Bank, Jammu & Kashmir Bank, and Karur Vysya Bank — along with 4,000 merchants — to offer this service across India. While the service has been successfully launched with IDBI Bank, the company is likely to start a pilot with other banks soon and expects a nationwide launch in a phased manner from the next fiscal year.

The company plans to have 5 lakh merchants on board by the end of 2024. Amit Narang, founder & CEO of Paymart India, said, “A swift and simple OTP-based process ensures complete security for cash withdrawals.”