Are There Fees & Charges for Using UPI for ATM Cash Withdrawals?

Are There Fees & Charges for Using UPI for ATM Cash Withdrawals?

03 October, 2023

The consistent innovations in conventional banking methods continue to redefine the way we handle our finances. UPI-ATM (Interoperable Cardless Cash Withdrawal) introduced by National Payments Corporation of India (NPCI) is just another example of such innovations. UPI-ATM service simplifies ATM cash withdrawals by allowing you to use UPI-enabled applications. In this article, you can get information on UPI-ATM transaction charges and an overview of UPI-ATM.

What is UPI-ATM?

UPI-ATM withdrawal is an innovative service that enables you to withdraw cash from an ATM without using a physical card. It leverages the UPI framework to initiate and authenticate ATM withdrawals through UPI-enabled mobile applications. However, you can only use this service if your bank is a participating member of the UPI-ATM ecosystem.

How does it work?

The process is just like the way you make UPI payments. However, in this case you will be authorising UPI payments to get money for yourself. Here are the steps you will need to follow:

  • Step 1: When you arrive at a participating banks’ ATM, you need to select the ‘UPI cash withdrawal’ option.

  • Step 2: Next, you must enter the desired withdrawal amount.

  • Step 3: Once the withdrawal amount is entered, the ATM will generate a single-use dynamic Quick Response (QR) code and display it on the screen.

  • Step 4: To complete the transaction, you need to scan the QR code using your UPI-enabled mobile application.

  • Step 5: After scanning the code, authorise the transaction by entering the UPI PIN. After authorisation, the amount will be debited from your account and ready to be dispensed.

  • Step 6: Now proceed to collect the cash by authorising the ATM machine to dispense cash to collect it.

Are there any additional costs for UPI-ATM withdrawals?

The NPCI does not levy any charge on the use of UPI-ATM services. However, the existing ATM fee structure may remain the same. It would depend on your account type and the number of ATM withdrawals you make in a month, which is applicable irrespective of whether you use a physical card or opt for cardless UPI-ATM withdrawals.

Furthermore, when conducting UPI-ATM transactions at ATMs belonging to other banks, there could be interbank charges. As per the latest updates, ATM withdrawal fees above the free limit is ₹21 plus applicable taxes. Therefore, it is essential to check with your bank to understand their specific fee structure, as exact details can vary depending on your bank’s policies and regulations.

Bottom line

To ensure transparency and avoid any surprises, it is best to familiarise yourself with your bank’s terms and conditions and potential UPI cash withdrawal fees, so that you can utilise UPI-ATM service without incurring unexpected charges.

​​​​​​​*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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