Everything to know about newly launched India’s 1st UPI-ATM for cardless cash withdrawals


UPI-ATM’s offers secure cardless cash withdrawals which is offered by some banks.

UPI-ATM Image
UPI-ATM

 

On September 5, during the Global Fintech Fest in Mumbai, Hitachi Payment Services introduced India’s first UPI-ATM in collaboration with the National Payments Corporation of India, allowing secure cardless cash withdrawals.

UPI, or Unified Payments Interface, is an NPCI-operated internet platform that allows for the immediate transfer of funds between bank accounts.

What is UPI-ATM?

The UPI-ATM is a white label ATM that allows for cash withdrawals without using a credit card. Customers of participating banks can withdraw cash without the use of an ATM or debit card. White label ATMs are ones that are owned and operated by businesses other than banks.

How does it work?

On the ATM, the consumer picks the ‘UPI cash withdrawal’ option and is prompted to enter the withdrawal amount. Following that, a one-time-use dynamic QR code appears on the ATM screen.

The customer uses any UPI app to scan the QR code and authorises the transaction by inputting a PIN on the mobile app. The cash is dispensed by the ATM when it has been validated.

What are the primary benefits of using the UPI-ATM service?

It offers a cardless transaction option that is interoperable.

The withdrawal limit per transaction is Rs 10,000. This will be in addition to the existing daily UPI limit and the issuer bank’s limit for UPI-ATM transactions.

There is no need to carry a card for ATM cash withdrawals, and the UPI app can be used to withdraw money from numerous accounts.

How does the UPI-ATM differ from cardless cash withdrawals?

The UPI-ATM provides the same convenience as cardless cash withdrawals offered by various institutions.

Cardless cash withdrawals use mobile and OTP, whereas UPI-ATMs use QR codes for cash withdrawals, according to Sumil Vikamsey, general director of cash business at Hitachi Payment Services, a Hitachi subsidiary.

“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,” according to the NPCI.

According to Praveena Rai, NPCI’s chief operating officer, UPI-ATMs would assist re-imagine ATMs and the ATM experience, cost, location, and reach.

“Wonderful that it is getting good reviews at the Global Fintech Fest in Mumbai,” she remarked.

Also Read: New UPI features announced by RBI: Chat with AI NFC support & many other features


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