Cash Withdrawals Using UPI at ATM

Cash Withdrawals Using UPI at ATM

28 September, 2023

Unified Payment Interface or UPI is one of the most convenient and user-friendly forms of payments, be it transferring money to other accounts or paying merchants. One of the features of UPI is QR code scanning where you simply need to scan a QR code using a UPI-enabled app, select a bank account, enter the PIN and complete the transaction. You can get information on UPI-ATM cash withdrawals below.

UPI: Cash Withdrawal

​​​​​​​The use of Unified Payments Interface (UPI) at ATMs has the potential to transform the UPI market in the digital landscape of India. With the proposed introduction of UPI for customer authorisation and settlement of transactions at ATM networks, this functionality can be expanded to include all banks and all ATM networks/operators, thus, making it more diverse.

This expansion would drive wider adoption of UPI as a payment method and bring more convenience to all. It can create a seamless and interoperable experience for you, enabling you to withdraw cash without the need for a physical card. For example, a customer with a UPI-linked bank account can approach any ATM, initiate a card-less cash withdrawal using UPI authentication, and receive the cash without using a physical card.

UPI-ATM Withdrawal Guide

​​​​​​​Here’s a guide on how you can withdraw cash from an ATM using UPI.

  1. At a UPI-enabled ATM, select the ‘UPI Withdrawal’ option on the ATM screen.

  2. Select the amount you would like to withdraw. The ATM will display a single-use dynamic QR code.

  3. Scan the QR code using a UPI-enabled app. Launch the preferred app on your phone and select the ‘Scan QR code’ or similar option.

  4. After scanning the code, your UPI app will prompt you to make the payment for the equivalent withdrawal amount.

  5. Select the linked bank account and authorise the transaction with the PIN.

  6. Once the transaction is authorised, the ATM dispenses the requested cash amount.

The customer receives a transaction confirmation through the UPI app and a receipt from the ATM.

Benefits of UPI-ATM cash withdrawal

The ICCW mechanism offers several benefits. Here are some of its key benefits.

  • Enhanced security: ICCW potentially eliminates the risk of card-related frauds at ATMs, such as skimming, card cloning or device tampering, as no physical card is used during the transaction. Singe use (signed) dynamic QR code are used for risk mitigation.

  • Accessibility: You can avail of the ICCW facility across all banks and ATM networks that support the UPI platform, making it widely accessible. If you have recently opened a bank account and have not received your physical card but would like to withdraw cash, you can withdraw via UPI.

  • Convenience: You can withdraw cash without carrying a physical card, making it convenient for situations where a card is unavailable or is lost/misplaced.

  • Cash withdrawals from multiple accounts: When you use an ATM card to withdraw money from the ATM, money will be deducted from the account linked to the card. However, with cash withdrawals via UPI, you can select an account of your choice from which the cash withdrawal amount will be deducted. You can link multiple bank accounts within your UPI app.

UPI-ATM transaction limits

You can withdraw up to ₹10,000 cash per transaction via ICCW. This limit shall be a part of the existing UPI per day limit as well as the limits set by your bank.

Cardless cash withdrawal vs. UPI-ATM withdrawals

The Reserve Bank of India has allowed ICCW transactions and both cardless cash withdrawals and UPI-ATM withdrawals are types of ICCW.

With cardless cash withdrawals, you need to initiate the request via NetBanking first. It also involves addition of beneficiaries, mobile numbers and one-time passwords. With UPI-ATM withdrawals however, you can instantly withdraw cash using any UPI-enabled app. All you have to do is scan the QR code and authenticate the transaction with your UPI PIN.

Bottom line

The introduction of UPI at ATMs would enhance security by mitigating risks associated with card frauds such as skimming, card cloning and device tampering. It would also contribute to reducing the dependence on physical cards and promote the use of digital payment methods. This shift towards UPI transactions at ATMs could drive greater financial inclusion, encourage more people to adopt digital payment solutions and strengthen the digital payments ecosystem in India.

​​​​​​​*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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