India’s first UPI ATM: How will it be different from cardless cash withdrawals

India’s first UPI-ATM, a White Label ATM (WLA) by Hitachi Payment Services in collaboration with the National Payments Corporation of India (NPCI), was introduced to enable seamless cash withdrawals without the need for physical ATM cards.

This innovation allows customers of certain banks to enjoy QR-based cashless withdrawals. The UPI-ATM, also known as Interoperable Cardless Cash Withdrawal (ICCW), offers a simple process for users of participating banks who use UPI to withdraw cash from compatible ATMs.

Here’s how it works:

• Select Withdrawal Amount: Customers choose the desired withdrawal amount when selecting the ‘UPI cash withdrawal’ option at the ATM.
• Generate QR Code: The ATM screen displays a unique and secure dynamic QR code linked to the selected withdrawal amount.
• Scan QR Code: Users scan this QR code using any UPI app installed on their Android or iOS smartphones.
• Authorize Transaction: To complete the transaction, users input their UPI PIN on their mobile device, authorizing the cash withdrawal.

Key Features of UPI-ATM:

• Compatible with various systems.
• No physical card required for transactions.
• Transaction limit of up to ₹10,000 per transaction, aligned with existing UPI daily limits and issuer bank’s UPI-ATM transaction limits.
• Convenient cash withdrawals without the need for an ATM card.
• Allows cash withdrawals from multiple accounts via the UPI app.

How UPI-ATM Differs from Bank’s Cardless Cash Withdrawals:

• Current card-less cash withdrawals rely on mobile numbers and OTPs, whereas UPI-ATM utilizes QR-based UPI cash withdrawals.
• UPI-ATM is accessible to UPI users who have a UPI app installed on their Android or iOS smartphones, offering a secure and efficient alternative for cash withdrawals.

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