Everything you need to know about the newly-launched UPI-ATM

UPI ATM

Hitachi Payment Services launched India’s first UPI-ATM, in association with the National Payments Corporation of India, on September 5, during the Global Fintech Fest in Mumbai, offering secure cardless cash withdrawals.

UPI, or Unified Payments Interface, is an online platform operated by NPCI that enables instant transfer of money between bank accounts.

Here's everything you need to know about the UPI-ATM.

What is the UPI-ATM?

The UPI-ATM is a white label ATM that facilitates cardless cash withdrawals. It allows customers of participating banks to withdraw cash without using an ATM or debit card. White label ATMs are those that are owned and operated by non-bank entities.

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How does the UPI-ATM work?

The customer selects the ‘UPI cash withdrawal’ option on the ATM and is prompted to select the withdrawal amount. Following this, a single-use dynamic QR code is displayed on the ATM screen.

The customer scans the QR code using any UPI app and authorises the transaction by entering a PIN on the mobile app. After validation, the ATM dispenses the cash.

What are the main features of the UPI-ATM service?

It provides an interoperable, cardless transaction facility.

The withdrawal limit is Rs 10,000 per transaction. This will be part of the existing daily UPI limit and as per the limit set by the issuer bank for UPI-ATM transactions.

There is no need to carry a card for ATM cash withdrawals and one can take out cash from multiple accounts using the UPI app.

How is the UPI-ATM different from cardless cash withdrawals?

The UPI-ATM offers the same ease of transacting as the option of cardless cash withdrawals provided by several banks.

Cardless cash withdrawals are based on mobile and OTP, while the UPI-ATM is based on QR codes for cash withdrawals, said Sumil Vikamsey, managing director of cash business at Hitachi Payment Services, a subsidiary of Hitachi.

"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,” the NPCI said.

How are people responding to the UPI-ATM?

Anand Mahindra, chairman of the Mahindra Group, posted a video of how the UPI-ATM works on X.

“This UPI ATM was apparently unveiled at the Global Fintech Fest 2023 in Mumbai on September 5. 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. I just have to make SURE I don’t misplace my cellphone!" Mahindra posted on X.

Praveena Rai, chief operating officer of NPCI, said UPI-ATMs will help re-imagine ATMs and the ATM experience, cost, location, and reach.

"Wonderful that it is getting good reviews at Global Fintech Fest in Mumbai," she said.