UPI-ATMs: Withdraw cash from ATMs using your UPI app and learn how to operate

As the name suggests, through UPI ATM, users will be able to withdraw money from ATMs just by scanning a QR code generated by the ATM

Taking a step further in the realm of cardless cash withdrawals, Hitachi Payment Services on Tuesday (Sept. 5) launched India’s first UPI ATM during the Global Fintech Fest in Mumbai. The step was taken in association with the National Payments Corporation of India (NPCI).

UPI is an online money transfer platform developed by state-backed NPCI, which enables instant wiring of money between bank accounts using mobile phones.

On Thursday, Piyush Goyal, India’s Minister of Commerce and Industry and Minister of Consumer Affairs, posted a video on X, showing a FinTech influencer demonstrating how UPI ATMs are operated.

What is UPI ATM?

As the name suggests, through UPI ATM, users will be able to withdraw money from ATMs just by scanning a QR code generated by the ATM, without having to use an ATM or debit card issued by the concerned bank.

Such ATMs will be white-label ATMs, which means that these will be owned and operated by non-bank entities.

How to use UPI ATMs?

To avail the cardless withdrawal services at UPI ATMs, users will need to select the ‘UPI cash withdrawal’ option. Then, they will be prompted to select the withdrawal amount. 

As they enter the desired withdrawal amount, a QR code will flash on the screen. The customers will then be required to scan the QR code and enter the PIN on the mobile app, as they do while sending money to some other person.

After validation through the mobile phone app, the ATM will dispense the cash.

What’s the need of UPI ATMs?

UPI ATMs would offer an interoperable, card-free transaction service. The withdrawal limit stands at Rs 10,000 per transaction. This limit aligns with the existing daily UPI transaction cap and adheres to the specific limits set by the issuing bank for UPI-ATM transactions.

You no longer need to carry a physical card for ATM cash withdrawals; instead, you can effortlessly withdraw cash from various accounts using the UPI mobile app.

What distinguishes UPI-ATM from cardless cash withdrawals?

UPI-ATM provides the same convenient transaction experience as the cardless cash withdrawal option offered by numerous banks.

However, the notable difference here is that while cardless cash withdrawals rely on mobile devices and OTP verification, the UPI-ATM utilises QR codes for cash withdrawals.

"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,” the NPCI said in a statement.