UPI-ATM Launched: The Future of Cardless Cash Withdrawals

byPriyanka JuyalLast Updated: February 19, 2024
UPI-ATM Launched
UPI-ATM Launched

Key Highlights:

  • India’s first UPI-ATM, launched in Mumbai on September 5, revolutionizes cardless cash withdrawals.
  • This ATM uses UPI technology, eliminating the need for physical debit cards or ATM visits.
  • Users select ‘UPI cash withdrawal,’ scan a QR code, and confirm the transaction with a PIN.
  • Notable features include interoperability, cardless transactions, and a Rs 10,000 withdrawal limit, streamlining access to funds.

India’s first UPI-ATM was unveiled on September 5 in Mumbai, marking a significant milestone in the realm of secure cardless cash withdrawals. This initiative, launched in collaboration with the National Payments Corporation of India (NPCI), offers a groundbreaking solution for easy access to funds.

The UPI-ATM leverages the Unified Payments Interface (UPI), a digital platform operated by NPCI, enabling instant money transfers between bank accounts. Unlike traditional ATMs, this white-label ATM does away with the need for physical debit cards or ATM visits, streamlining the process of cash withdrawal.

Here’s how the UPI-ATM operates: Customers select the ‘UPI cash withdrawal’ option or similar term on the ATM and choose their desired withdrawal amount. Subsequently, a unique dynamic QR code appears on the ATM screen. Users scan this QR code using any UPI app and validate the transaction by entering their PIN on the mobile app. Once confirmed, the ATM dispenses the requested cash.

UPI is your New Mobile Banking- Here’s Why!

Noteworthy features of this service include interoperability, cardless transactions, and a withdrawal limit of Rs 10,000 per transaction, in accordance with existing daily UPI limits and issuer bank restrictions. Importantly, users can access cash from multiple accounts through a single UPI app, eliminating the need for multiple cards.

What is UPI Payment and How it Works?

While several banks offer cardless cash withdrawals through mobile numbers and OTPs, the UPI-ATM relies on QR codes for cash transactions, offering a unique and secure approach.

In conclusion, this white-label ATM, powered by the Unified Payments Interface (UPI), a digital platform managed by NPCI, changes how we withdraw cash. You no longer need physical debit cards or go to a traditional ATM. It makes cash withdrawal easier and more secure with a new, efficient method.

Related News

RBI Increases UPI Lite Limits to ₹1,000 & Wallet to ₹5,000

The Reserve Bank of India (RBI) has made digital payments easier by increasing UPI Lite transaction limits. The per-transaction limit for UPI Lite has been raised from ₹500 to ₹1,000, and the overall wallet limit has increased from ₹2,000 to ₹5,000. These changes aim to simplify small-value transactions and make digital payments more accessible and convenient for users across India, especially on platforms like Paytm.
News Post: October 9, 2024

UPI Transaction Limit Increased To Rs 5 Lakh

NPCI has raised the UPI transaction limit to ₹5 lakh for sectors like tax payments, healthcare, education, and financial investments, effective September 16, 2024. This change enables high-value transactions through UPI, promoting digital payments across broader financial activities. However, the limit for peer-to-peer transfers remains at ₹1 lakh. Users should check with their banks to confirm the availability of the new limit.
News Post: September 17, 2024

NPCI’s Auto Top-Up for UPI Lite from October 31

Starting October 31, 2024, UPI Lite users will benefit from an auto top-up feature, automatically reloading their balance for small-value, PIN-less transactions under ₹500. The balance will have a limit of ₹2,000, with up to five auto top-ups allowed per day. Users can cancel the auto top-up anytime, while banks and UPI apps will provide the necessary support to manage the feature. The National Payments Corporation of India (NPCI) announced this update in a circular on August 27, aiming to make small payments more seamless and reduce the strain on core banking systems. Source: NPCI
News Post: September 13, 2024

RBI’s New ULI Will Speed Up Loan Approvals and Reduce Paperwork

RBI Governor Shaktikanta Das has announced the Unified Lending Interface (ULI), a new platform to make loan approvals easier and faster. ULI will let lenders quickly access important information, like land records, reducing paperwork. It's especially helpful for small businesses and rural borrowers. ULI is part of India's push for digital banking, along with JAM and UPI, and will be rolled out nationwide after a successful pilot. Das also talked about improving cross-border payments and using AI carefully in banking to ensure data is accurate and private.
News Post: September 4, 2024

RBI Launches UPI Cash Deposits at ATMs, No Debit Card Needed

The Reserve Bank of India (RBI) has rolled out the UPI Interoperable Cash Deposit (UPI-ICD) service, allowing customers to deposit cash at ATMs using UPI without the need for a physical debit card. Launched at the Global Fintech Fest 2024, this new feature supports deposits into any bank account via UPI at ATMs equipped with cash recycler technology. The initiative is a part of the RBI's ongoing efforts to expand UPI's reach and promote digital payments across India.
News Post: September 2, 2024

How UPI Circle Lets Multiple Users Share One UPI ID

UPI Circle by NPCI enables multiple users, such as family members, to share a single UPI ID, allowing for secure, delegated transactions. The primary user manages access,setting transaction limits of up to ₹15,000 per month and ₹5,000 per transaction for secondary users. Also, it enforces security through mandatory biometrics or app passwords. This feature is particularly useful for enabling digital payments for those without bank accounts, such as children or elders, while reducing cash dependency and maintaining control over the shared account. It also increases UPI adoption by providing a safe and convenient payment option for all. Read more about UPI Circle and how does it workupi
News Post: August 23, 2024

RBI Hikes UPI Tax Payment Limit to Rs 5 Lakh

UPI Limit for Tax Payments Increased from Rs 1 Lakh to Rs 5 Lakh

The Reserve Bank of India (RBI) has increased the UPI limit for tax payments from Rs 1 lakh to Rs 5 lakh. This means you can now pay larger tax amounts quickly and easily using UPI.

Effective immediately, taxpayers can transfer up to Rs 5 lakh in a single UPI transaction for paying taxes. This move aims to simplify the tax payment process and encourage digital payments. Additionally, the RBI has introduced 'delegated payments' through UPI, allowing users to authorize another person to make UPI payments from their account.

These measures are expected to make tax payments more convenient and boost digital payment adoption across India.

News Post: August 8, 2024

You May Also Like