India’s first UPI-ATM unveiled for hassle-free, cardless cash withdrawals. Here’s all you need to know.

Hitachi Payment Services, in partnership with the National Payments Corporation of India (NPCI), introduced India’s inaugural UPI-ATM in the form of a White Label ATM (WLA). This innovative solution aims to facilitate “seamless cash withdrawals,” negating the necessity for physical ATM cards. It provides an enhanced experience, enabling customers of specific banks to engage in “QR-based cashless withdrawals.”

“We are happy to launch the country’s first-ever UPI ATM on Android platform for our White Label ATM network in association with NPCI at the Global Fintech Fest 2023,” Hitachi Payment Services said in a statement.

As reported in Live Mint, the National Payments Corporation of India (NPCI) expressed its satisfaction, stating, “We are delighted to empower customers with this innovative and customer-friendly enhancement for ATM transactions. 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. This innovative concept is designed to provide quick access to cash even in remote areas of India without the need for a physical card.”

“The introduction of the ‘UPI ATM’ represents a noteworthy achievement in banking services, as it seamlessly amalgamates the convenience and security of UPI with traditional ATMs. This pioneering concept is tailored to offer expedited cash access, even in the remote regions of India, all without the necessity of a physical card.”

Hitachi Payment Services, which is a 100 per cent subsidiary of Hitachi Ltd., has a robust presence in the Indian payments sector. It is managing a network of over 65,500 ATMs, including 27,500 cash recycling machines, and 9,500 WLAs.

How does this work?

The UPI-ATM service, also known as Interoperable Cardless Cash Withdrawal (ICCW), offers a convenient way for customers of participating banks who are using UPI to withdraw cash from any ATM that supports UPI-ATM functionality, all without the need for a physical card.

When a customer opts for the ‘UPI cash withdrawal’ feature at the ATM, they will be guided to input their preferred withdrawal amount. Subsequently, a distinctive and secure dynamic QR code will be displayed on the ATM screen. To finalise the transaction and retrieve cash from the ATM, the customer is only required to scan this QR code utilising any UPI application and validate the transaction by entering their UPI PIN on their mobile device.

Steps to withdraw cash from UPI-ATM

Additionally, here’s a comprehensive ‘step-by-step’ instructional guide for your convenience and reference regarding the utilisation of the UPI-ATM service.

• Choose the cash amount you wish to withdraw.
• The ATM displays the UPI QR code linked to the chosen amount.
• Scan this QR code using your UPI application.
• Enter the UPI PIN for transaction authentication.
• Take your cash.

Features of UPI-ATM

• It is compatible with various systems.
• Transactions can be conducted without the requirement of a physical card.
• The transaction limit for each transaction can go up to ₹10,000, which aligns with the existing UPI daily limits and the issuer bank’s UPI-ATM transaction limits.
• This feature offers convenience by eliminating the need to carry an ATM card when making cash withdrawals.
• Users can perform cash withdrawals from multiple accounts via the UPI app.

What distinguishes it from the cardless cash withdrawal services provided by banks?

This innovation distinguishes itself from the existing cardless cash withdrawal alternatives provided by banks. Currently, cardless cash withdrawals depend on mobile numbers and OTPs, whereas the UPI ATM operates using QR-based codes. To avail of this service, users simply need to have a UPI application installed on their Android or iOS devices.

NPCI commented, stating that it represents a significant milestone in banking services by seamlessly integrating the convenience and security of UPI into traditional ATMs.

Anand Mahindra, the Chairman of Mahindra Group also shared the video of the UPI ATM on the X platform (formerly Twitter) and wrote: “The speed at which India is digitising financial services & making them consumer-centric as opposed to corporate-centric (Alarm bell for credit card companies?) is simply dazzling.”

UPI, which allows for immediate money transfers through mobile devices, handles around 75 per cent of the retail digital payment volume in India and is further rising. It recorded over 10 billion transactions in August 2023, up from 9.96 billion transactions in the previous month.

RBI Governor Introduces UPI LITE X For Offline Payments

Reserve Bank of India (RBI) Governor Shaktikanta Das, on September 6, 2023, unveiled UPI LITE X for offline payments, building upon the successful UPI LITE functionality.

In an effort to promote the wider use of QR codes and Near Field Communication (NFC) technology, Governor Das also introduced UPI Tap & Pay, an additional feature that allows users to conveniently complete payments by tapping NFC-enabled QR codes at merchant establishments.