India's first UPI-ATM unveiled for hassle-free, cardless cash withdrawals. Here's how it works
The UPI-ATM offers a convenient way for customers to withdraw cash from any ATM that supports UPI without the need for a physical card.
India's first UPI-ATM was launched on Tuesday as a White Label ATM (WLA) by Hitachi Payment Services in collaboration with the National Payments Corporation of India (NPCI) in order to enable “seamless cash withdrawals”, eliminating the need to carry physical ATM cards. It offers an experience that allows customers of certain banks to enjoy “QR-based cashless withdrawals”.
The National Payments Corporation of India (NPCI) was quoted in a Live Mint report as saying, “We are delighted to empower customers with this innovative and customer-friendly enhancement for ATM transactions. The launch of the ‘UPI ATM’ will mark a significant milestone in banking services by seamlessly integrating the convenience and security of UPI into traditional ATMs. This innovative concept is designed to provide quick access to cash even in remote areas of India without the need for a physical card.”
How does this work?
The UPI-ATM service, also known as Interoperable Cardless Cash Withdrawal (ICCW), offers a convenient way for customers of participating banks who are using UPI to withdraw cash from any ATM that supports UPI-ATM functionality, all without the need for a physical card.
When a customer selects the ‘UPI cash withdrawal’ option at the ATM, they will be prompted to enter the desired withdrawal amount. Once the amount is entered, a unique and secure dynamic QR code will appear on the ATM screen. To complete the transaction and obtain cash from the ATM, the customer simply needs to scan this QR code using any UPI app and authorize the transaction with their UPI PIN on their mobile device.
We have also created a comprehensive ‘step-by-step’ guide to using the UPI-ATM service for your reference.
Steps to withdraw cash from UPI-ATM
-Choose the amount you want to withdraw.
-The UPI QR code linked to your chosen amount will be shown.
-Use your UPI app to scan the QR code.
-Input your UPI PIN to confirm the transaction.
-Collect your cash.
Features of UPI-ATM
-Compatible with various systems.
-Transactions without the need for a physical card.
-Transaction limit of up to ₹10,000 per transaction, aligned with existing UPI daily limits and issuer bank's UPI-ATM transaction limits.
-Offers convenience by eliminating the necessity to carry an ATM card for cash withdrawals.
-Allows cash withdrawals from multiple accounts via the UPI app.
How is it different from cardless cash withdrawals offered by banks?
The current card-less cash withdrawals depend on mobile numbers and OTPs, whereas UPI-ATM functions through QR-based UPI cash withdrawals. UPI-ATM is available to individuals using UPI who have installed a UPI application on their Android or iOS smartphones. To conduct transactions, users need to have a UPI application installed on their Android or iOS mobile devices.