The shift from the conventional ATM to UPI ATM is a turning point in the Indian financial technology industry. Cash withdrawal has always been done with a debit or credit card through an ATM. However, with digital payments came UPI which became the most popular method due to its simplicity and efficiency. On September 5th, 2024, Mumbai saw the first UPI ATM being launched thereby setting a new record for cardless transactions.
Now Withdraw Cash using UPI
UPI ATM machine works on UPI platform operated by NPCI that allows users to withdraw money straight from their bank accounts using only their smartphones. Earlier there were OTP based cardless withdrawals but this was improved by making it scan QR code based which saves time. You can also deposit money using UPI with simple steps using UPI ATM.
Features of UPI ATM
Compatibility
The capacity for working with diverse bank platforms is among the most excellent things about UPI ATMs. With that said, regardless of the bank where you opened your account, it can easily be accessed via any ATM enabled with UPI. This is very useful in areas which are rural or underserved since there may not be many ATMs belonging to particular banks.
Transaction Limit
When it comes to withdrawal limits at UPI ATMs, it follows similar rules as other types of UPI transactions. Normally, one can withdraw up to ₹10 000 per transaction, which aligns with daily limits imposed on UPI by most banks but these numbers might change due regulatory updates or different policies from various financial institutions based on their customer’s needs.
Withdrawal Based On QR Code
Use of this security feature ensures safe and efficient transactions while using an ATM under Unified Payments Interface (UPI). Encrypted information about the process gets transmitted securely after scanning QR code thereby minimizing risks related to typical card skimming scams.
Immediate Dispensation
Once you give authority for cash through entering your personal identification number (PIN) associated with Unified Payments Interface; money will be given out immediately by this machine. It saves time because the whole operation takes only a few seconds and makes using such Automated Teller Machines more convenient than others.
Single App Multi-Bank Flexibility
One can withdraw money from multiple accounts held at different banks using just one application provided they are all linked together under Unified Payments Interface (UPI). Users don’t need many cards or PINs either.
UPI Cash Withdrawal using UPI ATM
To withdraw cash with UPI ATM is a simple process that utilizes the technology behind Unified Payments Interface (UPI) for secure card-less transactions. Here’s the step-by-step guide on how to do it:
Step 1: Find a UPI-Enabled ATM
Look for an ATM that supports UPI. These ATMs usually have signs saying they work with UPI. You can find the nearest UPI ATM here.
Step 2: Choose the UPI Withdrawal Option
Navigate through the ATM screen. Once you get to the ATM, interact with its screen where there should be an option labeled “UPI Withdrawal” or “UPI Cardless Cash”. Select this option to start.
Step 3: Enter Amount
Key in withdrawal amount. The machine will ask you to enter how much money you want to take out. Use the keypad to input your desired amount and confirm it.
Step 4: Scan QR Code
Scan using your smartphone. An on-screen QR code will be shown by the machine. Open any of your UPI-enabled mobile payment apps like PhonePe, BHIM, Google Pay etc., on your smartphone and scan the code displayed on the machine’s screen using the app’s QR scanner.
Step 5: Verify Transaction
Authenticate transaction : After scanning QR code, your UPI app will present you with a confirmation request showing details of amount and account from which funds will be deducted. Cross-check these details then authorize transaction by entering your UPI PIN into app.
Step 6: Finish Withdrawal
Take out cash from machine. If all goes well – transaction authorized and correct PIN entered – then ATM will complete operation by dispensing requested sum of money.
Step 7: Finalize Transaction
Obtain receipt indicating completion of process. Machine might give an option to print receipt after releasing cash. Confirm whether or not you want receipt for this transaction, collect any printed receipts and ensure that phone along with everything else is retrieved before leaving ATM area.
Advantages of UPI ATM Over Traditional Methods
There are several advantages provided by these machines over traditional ones when we talk about getting money out:
No Physical Card Needed: What stands out about U.P.I.-enabled A.T.M.s is that they do away entirely with physical debit or credit cards, which are easily lost or stolen.
Enhanced Security: Each transaction made through a UPI ATM has its own unique dynamic QR code that’s more secure than traditional ATM cards, which can be duplicated by criminals using skimming devices.
Convenience: Any U.P.I.-enabled A.T.M. can be used at any bank anywhere in the country — even if it isn’t part of your bank’s network. This is especially convenient for people who travel frequently or live in areas with limited numbers of ATMs belonging to their own banks.
Lower Fraud Risk: Dual-layer authentication involving UPI PINS and QR codes makes it much harder for fraudsters to get away with their crimes.
UPI cash withdrawals represent a significant leap towards a more secure and convenient banking future. By eliminating physical cards and leveraging the robustness of the UPI platform these ATMs offer users an easy to use while still safe method for accessing cash thus embodying the next step in financial transactions evolution.