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.
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.
You can withdraw cash without the need for a physical ATM card, enhancing accessibility and eliminating the risk of card loss or damage.
The UPI-ATM facilitates interoperable, cardless transactions, allowing users to seamlessly access cash from multiple accounts using a UPI app.
Leveraging dynamic QR codes and UPI PIN authorization, the UPI-ATM ensures secure and authenticated transactions, minimising the risk of unauthorised access.
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.
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.
The Fi-Federal co-branded Debit Card offers you several features, including zero Forex charges on select plans, contactless payments using 'Tap and Pay', and customisable transaction limits. In addition, the card provides you with a range of offers from top brands across various categories, like food, shopping, travel, entertainment and more.
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.
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.
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.
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.
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.