Can You Withdraw Money from UPI at ATMs?

byDilip PrasadMay 29, 2025
What is ATM

India’s digital payments landscape just got even more convenient: you can now withdraw cash from select ATMs using your UPI app—no physical debit or credit card required. This Interoperable Cardless Cash Withdrawal (ICCW) service, branded as UPI-ATM, is powered by the National Payments Corporation of India (NPCI) and integrates seamlessly with the existing ATM network.

What Is UPI ATM Cash Withdrawal?

UPI-ATM is an ICCW service that allows any bank customer registered on UPI to withdraw cash from participating ATMs without inserting a card. Authorization happens via the user’s UPI app, and settlement flows through the NPCI’s National Financial Switch (NFS) network. 

How Does a UPI ATM Withdrawal Work?

  1. Locate a UPI-Enabled ATM: Look for the “UPI ATM” or “ICCW” logo on the ATM façade or screen.
  2. Select ‘UPI Cash Withdrawal’: On the ATM screen, choose the UPI option instead of inserting a card.
  3. Scan the Dynamic QR Code: The ATM displays a single-use QR code.
  4. Authorize via Your UPI App: Open your preferred UPI app, scan the QR code, enter the withdrawal amount and your UPI PIN to confirm.
  5. Collect Your Cash: Once the transaction is approved, cash is dispensed just like a regular ATM withdrawal NPCI.

Are There Charges for UPI ATM Withdrawals?

Currently, ICCW transactions incur the same fees as conventional ATM withdrawals. Fee structures—such as per-transaction charges or free-withdrawal limits—depend on your issuing bank’s policy. Always check with your bank for the most accurate, up-to-date information.

Can I Use Paytm UPI for ATM Cash Withdrawals?

Yes! If your bank supports ICCW, you can use the Paytm UPI feature to make cardless ATM withdrawals. Simply ensure that your bank account is linked in your Paytm app and follow the same QR-scan process at ICCW-enabled ATMs.

Benefits of UPI ATM Withdrawals

  • Convenience: No need to carry a physical card—ideal if you forget or lose your debit card.
  • Speed: QR-based authorization often cuts down transaction time.
  • Security: Single-use dynamic QR codes and UPI PIN ensure secure authentication.
  • Interoperability: Withdraw from any participating bank’s ATM, regardless of which bank issued your UPI handle.

The Road Ahead: NPCI continues to expand ICCW across the NFS network. As more banks enable UPI-ATM functionality, accessibility will widen—from metro centers to tier-2 and tier-3 towns. This evolution supports India’s broader aim of a truly digital economy, where cash and digital payments co-exist seamlessly.

FAQs

What is a UPI ATM withdrawal?

UPI ATM withdrawal (also called Interoperable Cardless Cash Withdrawal or ICCW) lets you withdraw cash from participating ATMs by scanning a dynamic QR code through your UPI app. No physical debit or credit card is required.

How do I withdraw cash using UPI at an ATM?

  • Locate an ATM displaying the “UPI ATM” or “ICCW” logo.
  • On the ATM screen, select UPI Cash Withdrawal.
  • Scan the one-time QR code displayed on the screen using your UPI app.
  • Enter the withdrawal amount (up to ₹10,000 per transaction) and your UPI PIN.
  • Collect your cash once the transaction is approved.

What is the UPI ATM withdrawal limit?

NPCI’s guideline caps each UPI withdrawal at ₹10,000 per transaction. Daily and monthly limits set by your bank (identical to your debit-card ATM withdrawal limits) will also apply.

Are there any charges for UPI ATM withdrawals?

ICCW transactions incur the standard ATM withdrawal fees levied by your bank. These fees—such as per-transaction charges or a certain number of free withdrawals per month—vary by issuer, so check your bank’s fee schedule.

Which UPI apps and banks support cardless ATM withdrawals?

Most major UPI apps like Paytm support ICCW, provided your bank has enabled the service. Look for “UPI ATM” branding on the ATM, and ensure your bank account is linked in your UPI app before attempting a cardless withdrawal.
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