A Step-by-step guide to UPI ATM Cash Withdrawals

A Step-by-step guide to UPI ATM Cash Withdrawals

03 October, 2023

National Payments Corporation of India (NPCI) has introduced UPI-ATM, a truly cardless way to withdraw cash from ATMs. It seamlessly integrates the convenience and security of Unified Payments Interface (UPI) into traditional ATMs. This innovative concept aims to provide quick access to cash, even in remote areas of India, without the need for a physical card. Below is a step-by-step guide on UPI cash withdrawals.

An overview of UPI-ATM cash withdrawal

UPI, for the most part, has been ubiquitous to money transfers and merchant payments. However, now, you can use UPI to withdraw cash from ATMs. You will no longer have to rely on your physical bank cards for cash withdrawals. The prevailing cardless cash withdrawal involves NetBanking, mobile numbers, OTPs, adding beneficiaries, etc. UPI-ATM transactions offer a simpler and relatively quicker way of cash withdrawal.

UPI-ATM transactions – a step-by-step guide

Here’s the process of UPI-ATM’s cardless cash withdrawal:

  1. Look for the option labelled ‘UPI Cardless Cash’ on the ATM screen. Tap on it to proceed.

  2. Next, you will see a list of fast cash options displayed on the screen. These options typically include amounts like ₹100, ₹500, ₹1,000, ₹2,000 and ₹5,000. Choose the desired amount based on your requirements.

  3. After selecting the amount, a QR code will be generated on the screen. Now, launch any UPI-enabled mobile app, such as BHIM Pay, HDFC Bank PayZapp or any other UPI-enabled app.

  4. Within your UPI app, find the option to scan QR codes. This option would be located in the ‘Scan & Pay’ section. Tap on it to activate the scanning feature.

  5. Align your mobile device's camera with the QR code displayed on the ATM screen. Make sure the QR code is fully visible within the scanning frame. Once aligned, the UPI app will automatically detect the code and prompt you to approve the payment.

  6. Verify the transaction details, including the amount and recipient. Proceed to approve the payment by following the instructions within your UPI app.

  7. Once you have approved the payment, the ATM screen will display a confirmation message asking you to proceed with the cash withdrawal. Tap on the ‘Proceed’ button to continue.

  8. You will be prompted to enter your UPI PIN for authentication.

Once the UPI PIN is verified, the ATM will dispense the requested amount of cash. Now you can collect your cash from the machine.

Benefits of UPI-ATM cash withdrawal

The following are various benefits of UPI-ATM’s cardless cash withdrawal facility:

  • Security: The UPI ATM feature incorporates QR-based withdrawals, making transactions more secure. This reduces the risk of card cloning, skimming and other fraudulent activities associated with physical cards. The use of UPI and mobile phones adds an extra layer of security to cash withdrawals. A single-use QR code (shall) is used to mitigate risks.

  • Financial inclusion: The Interoperable Cardless Cash Withdrawal (ICCW) offered by UPI ATMs enhances financial inclusion. It allows any bank customer to withdraw cash from any bank ATM, expanding access to money for individuals across society. This feature promotes interbank transactional efficiency and increases financial access for a wider population.

  • Reduced dependency on physical Cards: With the UPI ATM feature, you can withdraw cash easily from any bank ATM using your mobile phone. This eliminates the need for a physical ATM card. You can access your money anytime and anywhere, making banking more convenient. UPI-enabled ATM transactions thus, reduce the fear of losing or misplacing ATM cards.

Bottom line

The launch of UPI-enabled ATMs combines the convenience of digital transactions with the superior functionality of physical infrastructure. It empowers users with the ability to withdraw cash digitally, safely and conveniently. This shift can contribute to a more efficient and inclusive digital era.

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​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.

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