In the rapidly evolving landscape of digital finance, the Unified Payments Interface (UPI) has emerged as a game-changer, facilitating seamless peer-to-peer and peer-to-merchant transactions. Among its innovative applications is the concept of the UPI ATM, a virtual gateway that promises to redefine how users interact with their money.
This article explores the functionalities, limitations, benefits, and the transformative impact of UPI ATMs. Let’s take a look.
Also read: UPI users on the rise in India, but so are online payment frauds: Warns RBI
What is UPI ATM?
A UPI ATM, or Unified Payments Interface (UPI) ATM, is a service that allows you to withdraw cash from ATMs without a debit card. It utilises the UPI platform, a popular digital payment system in India, for a cardless and interoperable experience.
It’s important to note that UPI cash withdrawal is currently available for selected banks and ATMs.
Primary benefits of UPI ATM
- Cardless Transactions: Users can withdraw cash from ATMs without needing a physical debit card.
- Enhanced Security: By eliminating the need for a physical card, UPI ATMs reduce the risk of card cloning and skimming, enhancing overall transaction security. Also, it enhances convenience and reduces the risk of loss or theft.
- Interoperability: UPI ATMs are designed to work across different banks and ATM networks, ensuring that users can withdraw cash from any participating ATM regardless of their bank.
How to withdraw money from an ATM through UPI
Step 1: Select the ‘UPI cash withdrawal’ option at the ATM
Step 2: The ATM will prompt the customer to enter the withdrawal amount.
Step 3: A signed dynamic QR shall be displayed on the ATM screen for 30 seconds.
Step 4: Now scan the QR code using an UPI App on your mobile and authorise the transaction using UPI Pin.
Step 5: Cash will now be dispensed.
Limitations
- You can withdraw a maximum amount of ₹10,000 INR per transaction. It shall be part of the existing UPI per day limit and as per the limits set by Issuer Bank for UPI-ATM transactions.
- You have to enter the amount in multiples of ₹100 INR.
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Ayushi Jain
Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile
