India gets its first UPI ATM: How to withdraw cash; benefits over ATMs
The NPCI has said the UPI ATM will provide quick access to cash even in remote areas of India without the need for a physical card
The Unified Payments Interface (UPI) has revolutionised digital payments in India and even beyond borders. Now, you can even withdraw money from ATMs using UPI.
Hitachi Payment Services, a subsidiary of Japan’s Hitachi Ltd, on Tuesday (September 5) launched India’s first UPI ATM in Mumbai, in association with the National Payments Corporation of India (NPCI). It is a White Label ATM (WLA), which is the term accorded to ATMs set up, owned, and operated by non-banks.
The NPCI has said the UPI ATM will “provide quick access to cash even in remote areas of India without the need for a physical card”. So, let’s see how it works.
How to withdraw cash from a UPI ATM
- You will see a touch panel saying “Welcome to UPI ATM” and “UPI Cardless Cash” below it. Tap on “UPI Cardless Cash”
- It will take you to another window with Rs 100, Rs 500, Rs 1000, Rs 2000, and Rs 5000 as options for quick cash withdrawal and a button for other amounts.
- Once you select an amount, the screen will display a QR code.
- Scan the code using any UPI app (BHIM, GPAY, etc.)
- Next, you will be prompted to select a bank account.
- Once you click on “Confirm”, the screen will show “Confirm to withdraw cash” and you have to click on “Proceed”.
- Next, enter your UPI PIN.
- The transaction will be cleared and you can collect your cash.
How is it different from banks’ card-less cash withdrawals?
The card-less cash withdrawal facility offered by some banks relies on mobile numbers and OTPs. However, the UPI-ATM operates through QR codes.
All you need is a smart phone and a UPI app installed on it. It will work on both Android or iOS devices.
The UPI ATM is reportedly built on the Android operating system.
Benefits of UPI ATM
- You do not need to carry a debit or credit card.
- You can choose from multiple accounts while withdrawing cash using the UPI app.
- It will eliminate the risk of card skimming — a method fraudsters use to steal your card information, such as PIN and card number, with the help of devices they install at ATMs or payment counters.