The meeting saw banks and PhonePe’s rivals — including Paytm — raising questions on PhonePe being allowed to launch this service in the absence of any regulatory framework on cash withdrawal through UPI.While cash withdrawal at point-of-sales (PoS) machines is allowed by the Reserve Bank of India (RBI), NPCI hasn’t yet formulated norms for this using the UPI platform.

Sources said NPCI is now working on framing guidelines for the same.The corporation also debated with banks if the service should be charged to consumers, which PhonePe is not in favour of as it feels a charge on cash withdrawal will “kill” the service.

The ATM-like service, which clocked 1 lakh withdrawals over Friday and Saturday last week, is available with a million merchants in India.

Banks are pushing to levy a charge, which PhonePe is resisting.

“We already have a Paytm ka ATM service that offers cash-in and cash-out facility from more than 67,000 locations in India for our customers,” Paytm said in a statement without commenting on PhonePe ATM. | To read full story, visit https://startuparound.com/read/1582354806.201705/Rivals-slam-PhonePe’s-ATM-business?ref=audio_experience