On Tuesday, Hitachi Payment Services, in collaboration with the National Payments Corporation of India (NPCI), introduced India’s inaugural UPI-ATM, operating as a White Label ATM (WLA). The primary goal is to facilitate seamless cash withdrawals, eliminating the requirement for physical ATM cards. This service enables customers of select banks to enjoy cashless withdrawals through QR codes.
The NPCI expressed its enthusiasm for this customer-centric innovation in ATM transactions, emphasizing the integration of the convenience and security of UPI into traditional ATMs. The ‘UPI ATM’ launch represents a significant advancement in banking services, ensuring quick access to cash even in remote areas of India, all without the need for a physical card.
How does this system function? The UPI-ATM service, also known as Interoperable Cardless Cash Withdrawal (ICCW), provides a user-friendly method for UPI users from participating banks to withdraw cash from UPI-ATM enabled ATMs, completely bypassing the need for a physical card.
When a customer selects the ‘UPI cash withdrawal’ option at the ATM, they are prompted to input the desired withdrawal amount. Subsequently, a secure and unique dynamic QR code appears on the ATM screen. To finalize the transaction and obtain cash, the customer simply scans this QR code using any UPI app and authorizes the transaction with their UPI PIN on their mobile device.
We have also created a detailed ‘step-by-step’ guide for using the UPI-ATM service, which you can reference.
Steps to withdraw cash from UPI-ATM:
- Select the withdrawal amount.
- Display the UPI QR code corresponding to your chosen amount.
- 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.
- Enables transactions without physical cards.
- Transaction limit of up to ₹10,000 per transaction, aligning with existing UPI daily limits and issuer bank’s UPI-ATM transaction limits.
- Offers convenience by eliminating the need to carry an ATM card for cash withdrawals.
- Allows cash withdrawals from multiple accounts via the UPI app.
How does it differ from cardless cash withdrawals provided by banks? Current cardless cash withdrawals rely on mobile numbers and OTPs, whereas UPI-ATM operates through QR-based UPI cash withdrawals. UPI-ATM is accessible to UPI users with UPI apps installed on their Android or iOS smartphones. Users must have a UPI application installed on their mobile devices to conduct transactions.
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