March 17: Nowadays, if you go to withdraw money from an ATM, you see an option saying 'cardless service'. This is a service that allows you to withdraw money from an ATM without an ATM card.

Bank’s customers can now withdraw money from ATM machine even if they don't carry an ATM card. That means customers can now save Rs 500 annually that the banks charge for ATMs.

Customers who have taken mobile banking service can avail the cardless service without paying any additional charges. For that, customers must be smart phone users.

This is an additional facility for customers using mobile banking services to withdraw money without a card or cheque. Before Covid-19, bank customers could withdraw money from their accounts only with ATM or by issuing a cheque.

How to get cardless service?

To get the cardless service, first of all you need to get the mobile banking service. If you have the facility of mobile banking, you should select 'Cardless Withdraw' in the mobile app of the respective bank. Then you should mention the amount you want to withdraw multiplied by Rs 500. After that, if you click on withdraw, an OTP code will be sent to your registered mobile number. Then you have to start the process for cardless service by pressing the cardless withdrawal button on the ATM machine.

After choosing the language at the ATM, you have to enter your mobile number registered in mobile banking system and enter the amount you want to withdraw. This amount and the previous amount entered by the user in mobile banking should be the same.

After entering the previously received OTP on the mobile, the user can withdraw the money from the ATM without an ATM card.

For this transaction, the customer can withdraw a minimum of Rs 500 to a maximum of Rs 25,000 at a time. Similarly, one can withdraw up to Rs 100,000 in a day and Rs 400,000 in a month.

How many cardless service users are there in Nepal?

During the outbreak of Covid-19 infection in Nepal, many people were afraid to withdraw money from ATMs. Niraj Sharma, head of the Retail Transaction Banking of Nabil Bank, said that Nepali banks realized the need for cardless ATMs in the country during the Covid-19 period and took the initiative to start cardless service. He said that the number of customers withdrawing money through this method is increasing.

"Earlier, money could be withdrawn only with the help  of checques and ATMs. Even if someone forgets/loses the ATM or loses the ATM's PIN number, the customer should not have to worry about withdrawing money. Keeping in mind the increasing use of smartphones, the bank has combined the facility of withdrawing money from ATMs with mobile banking," he said.

He said that cardless withdrawal was started when many people were afraid to go to ATMs due to the fear of Covid-19. He also informed that this service has been implemented in 271 ATMs of Nabil Bank.

Advantages and disadvantages of cardless withdrawal

The cardless service helps customers get rid of the hassle of carrying an ATM card and also saves the annual renewal fee of the ATM. However, the cardless service is currently limited only within the channel of a particular bank. The drawback is that you have to reach your bank's ATM even if it is far away.

Not all commercial banks have the service while development banks have also started this service.

Ganesh Kandel, a bank employee, said that there are more than 55,000 cardless users of Sangrila Development Bank, which has started cardless ATM service since last April.

There is no charge for this. He said that this service is provided at the same fee as mobile banking service. Currently, this service can be availed only through the bank's own ATM network. However, bankers say that in the future, cardless service can also be provided through inter-bank ATMs.

History of cardless service in Nepal

Sunrise Bank started cardless ATM for the first time in Nepal during the Covid-19 period. Most of the banks that are operating now are providing this facility.

Cardless ATM service in Nepal is operated by Nepal Electronic Payment System (NCHL).

The number of mobile banking users is increasing in Nepal. The banks believe that with the increase in the number of mobile banking users, the number of cardless ATM users will also increase in the coming days.

According to the latest data of Nepal Rastra Bank, in the last fiscal year (FY 2021/22), the number of mobile banking users in Nepal increased by 29 percent compared to the previous year and reached 18.3 million.