In terms of cashless transactions, both India and UPI are ready for the next level! It is known after Hitachi Payment Services demonstrated UPI ATMs during the Gloan Fintech event in Mumbai. This was organized in collaboration with the National Payments Corporation of India (NPCI).
All About UPI ATMs
UPI is a state-supported online money transfer platform created by NPCI, enabling instant money transfers between bank accounts using mobile phones.
Last Thursday, Piyush Goyal, India’s Minister of Commerce and Industry and Minister of Consumer Affairs, posted a video on platform X. In the video, a FinTech influencer demonstrated how UPI ATMs work.
See for yourself how the UPI ATM withdrawal system works with the video embedded below:
What is a UPI ATM?
With UPI ATM, you can easily withdraw cash from ATMs by scanning a QR code generated by the machine without needing your bank’s ATM or debit card. These ATMs are known as white-label ATMs and are operated by non-bank entities.
The process to Use UPI ATMs
To use cardless withdrawal at UPI ATMs, select ‘UPI cash withdrawal,’ then choose the amount you want to withdraw.
After choosing the amount, a QR code will appear on the screen. Scan this code and enter your PIN in the mobile app, just like when sending money to someone else. Once the app confirms the transaction, the ATM will dispense your cash.
Why are UPI ATMs Required?
UPI ATMs offer a convenient cardless transaction service with a withdrawal limit of Rs 10,000 per transaction, in line with existing UPI transaction limits. You can now easily withdraw cash from various accounts using the UPI mobile app, eliminating needing a physical card.
Also read:Are Your UPI Payments Stucked? No Worries! Check The Tips to Ensure The Smooth UPI Transactions
Difference Between Regular ATMs and UPI ATMs
UPI-ATM offers a similar easy transaction experience to the cardless cash withdrawal option in many banks. However, the main difference is that UPI-ATM uses QR codes for cash withdrawals, while cardless withdrawals typically rely on mobile devices and OTP verification.
“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,” reads NPCI statement.