The idea is good, but currently there are several issues
1) Not every ATM of the bank will allow card-less cash withdrawal. It seems banks need to upgrade ATM software to allow this facility.
2) Inter-bank ATM withdrawal is not available. So you need to withdraw from the same bank ATM.
3) Every transaction (successful or failed) will cost the sender a fee (Rs 25 for now)
4) There is a upper limit on the amount that can be transferred
5) It requires sender to register for both internet banking and mobile banking
This is not really a new thing world-wide. Several banks in other countries have some or the other variation of card-less cash withdrawal facility.
What I would like to see is allowing a limitless self-withdrawal facility with just my mobile phone. Something like this
https://www.youtube.com/watch?v=WqtxwFPUSfs
A card-less self-withdrawal will be really cool and highly useful, since then there is really no need for ATM card ever.
A better option would be to use bio-metric identification, like this
