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All You Need To Know About India’s First UPI-ATM

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Created on
November 15, 2023


What’s Inside

Earlier in September 2023, Hitachi Payment Services, in collaboration with the National Payments Corporation of India (NPCI), unveiled India's inaugural UPI-ATM during the Global Fintech Fest in Mumbai. These innovative white label ATMs (devices that are owned and operated by non-banks), facilitate secure cardless cash withdrawals, providing an alternative to traditional methods. 

What is the UPI-ATM?

UPI-ATM stands for Unified Payments Interface Automated Teller Machine. Unlike traditional ATMs, this white label ATM, functions seamlessly with the Unified Payments Interface, enabling users to withdraw cash without the need for a physical card. By selecting the 'UPI cash withdrawal' option, you can effortlessly transact using a dynamically generated QR code, enhancing convenience, security, and digital payments interoperability.

Key Features of a UPI-ATM

  • Interoperable, cardless transactions.
  • ₹ 10,000 withdrawal limit per transaction, aligning with existing daily UPI limits.
  • No need for a physical card, enabling cash withdrawals from multiple accounts through the UPI app.

Benefits of a UPI-ATM

1. Cardless Convenience

You can withdraw cash without the need for a physical ATM card, enhancing accessibility and eliminating the risk of card loss or damage.

2. Interoperable Transactions

The UPI-ATM facilitates interoperable, cardless transactions, allowing users to seamlessly access cash from multiple accounts using a UPI app.

3. Secure

Leveraging dynamic QR codes and UPI PIN authorization, the UPI-ATM ensures secure and authenticated transactions, minimising the risk of unauthorised access.

4. Enhanced User Experience

The introduction of the UPI-ATM signifies a user-centric approach, offering a more streamlined and user-friendly method for cash withdrawals, contributing to a positive overall banking experience.

Steps to Withdraw Cash from the UPI ATM

Step 1: Select the ‘UPI Cash Withdrawal’ option at the ATM.

Step 2: Enter the desired withdrawal amount.

Step 3: A single-use UPI QR code for the chosen amount is displayed.

Step 4: Scan the QR code using your UPI app.

Step 5: Authorise the transaction by entering your UPI PIN.

Step 6: Collect your cash.

In Conclusion

UPI-ATM will give you the convenience of cardless cash withdrawals with the difference that while the latter relies on mobile numbers and OTPs, UPI-ATM uses QR codes for transactions. However, it is still in its nascent stage and will take some time to be properly rolled out across the country and cover all banks. Meanwhile, though, you can use a debit card not only to withdraw cash but also to avail a variety of benefits.

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Frequently Asked Questions 

1. What is the UPI-ATM, and how does it work?

The UPI-ATM is a groundbreaking cardless cash withdrawal system introduced by Hitachi Payment Services in collaboration with NPCI. Users select the 'UPI cash withdrawal' option, choose the withdrawal amount, and a dynamic QR code is displayed. By scanning this code with any UPI app, users can authorise the transaction with a PIN on the app, prompting the ATM to dispense cash securely.

2. Who introduced India's first UPI-ATM, and what are its main features and benefits?

India's first UPI-ATM was introduced by Hitachi Payment Services in association with NPCI. Key features include interoperability, a Rs 10,000 withdrawal limit aligned with daily UPI limits, and the ability to withdraw cash from multiple accounts without a physical card. This innovative solution seamlessly integrates the efficiency and security of UPI into traditional ATM services.

3. How can individuals access and use the UPI-ATM service in India?

To access the UPI-ATM service, individuals need to have a UPI application installed on their Android or iOS devices. The process involves selecting the withdrawal amount at the ATM, scanning the dynamically generated QR code with any UPI app, authorising the transaction with the UPI PIN, and collecting the dispensed cash.

4. Are there any transaction limits or fees associated with using the UPI-ATM, and if so, what are they?

The UPI-ATM comes with a ₹ 10,000 withdrawal limit per transaction, in line with existing daily UPI limits. However, it is also wise to check your issuing bank’s daily limit and guidelines for UPI-ATM transactions. As for fees, the specifics may vary depending on individual banks and their policies.

5. What potential impacts or changes can be expected in the Indian banking and payment landscape with the introduction of UPI-ATMs?

The introduction of UPI-ATMs marks a significant milestone in India's banking and payment landscape. This innovation offers a secure and efficient alternative for cardless cash withdrawals, providing users with a seamless experience. It reflects the ongoing evolution of digital payment systems, contributing to the nation's growing reliance on advanced, user-friendly financial technologies.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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