How To UPI Cash Withdrawal from ATM
Unified Payments Interface (UPI) has revolutionized digital payments in India. With the rapid adoption of UPI for everything from online shopping to peer-to-peer transfers, it’s now stepping into another crucial service — cash withdrawal from ATMs using UPI. This new feature offers added convenience and security to millions of users who rely on digital payments but occasionally need physical cash.
In this article, we explore everything you need to know about UPI Cash Withdrawal from ATM including how it works, its benefits, the transaction process.
What is UPI Cash Withdrawal from ATM?
UPI cash withdrawal is a feature that allows users to withdraw money from ATMs without using a debit or credit card. Instead, users can scan a QR code displayed on the ATM screen using their UPI-enabled app (like Google Pay, PhonePe, Paytm, or BHIM), authenticate the transaction, and receive cash.
This feature is also known as Interoperable Cardless Cash Withdrawal (ICCW) and is part of the growing infrastructure supported by the National Payments Corporation of India (NPCI).
How Does UPI ATM Withdrawal Work?
The UPI ATM withdrawal process is simple and user-friendly. Here’s a step-by-step guide:
- Visit a UPI-enabled ATM: Currently, banks are upgrading ATMs to support UPI-based cash withdrawals. Look for “UPI cash withdrawal” or “ICCW” signage.
- Select UPI option on ATM screen: Choose the UPI option from the menu.
- Enter the withdrawal amount: Input the amount you wish to withdraw. Most banks allow withdrawals in multiples of Rs. 100 or Rs. 500.
- Scan the QR code: A unique dynamic QR code will appear on the screen. Open your UPI app, scan the code, and confirm the amount.
- Authorize the transaction: Enter your UPI PIN to authenticate the withdrawal.
- Collect cash: The ATM will dispense the requested amount once the transaction is verified.
Key Benefits of UPI ATM Withdrawals
1. Cardless Convenience
The most significant advantage is that you don’t need to carry your debit or credit card. This reduces the risk of card theft, loss, or skimming frauds.
2. Enhanced Security
Each QR code is session-specific and expires quickly. Plus, authentication is done via your mobile device, reducing exposure to ATM-related frauds.
3. Interoperability
You can use any UPI app with any bank’s UPI-enabled ATM. There’s no restriction to your bank’s ATM alone.
4. User-Friendly
With smartphone penetration on the rise and UPI apps already widely used, adding ATM withdrawal through UPI feels natural and intuitive for most users.
5. Reduces Card Wear and Tear
Frequent usage of debit or credit cards can wear out the chip or magnetic strip. UPI-based withdrawals eliminate physical contact.
UPI ATM Withdrawal Limits
- Daily Limit: As of now, most banks cap UPI-based ATM withdrawals at Rs. 10,000 per day.
- Per Transaction Limit: Usually, a limit of Rs. 5,000 per transaction applies.
- These limits may vary depending on your bank and UPI app, so always verify with your provider.
Charges for UPI Cash Withdrawals
UPI ATM withdrawals are usually free up to a certain number of transactions each month. After the free limit, standard ATM withdrawal charges may apply. It’s advisable to check with your bank regarding exact fee structures.
Supported Banks and Apps
As of now, many major banks like Indian Bank, Union Bank of India, Punjab National Bank, and others are rolling out UPI-enabled ATMs. Apps such as BHIM, Google Pay, PhonePe, and Paytm support this feature. More banks and apps are expected to join as the system gains traction.
Tips for Using UPI ATM Withdrawals Safely
- Always use your personal device for scanning and authorization.
- Never share your UPI PIN with anyone.
- Verify the QR code before scanning to ensure it is generated by the ATM.
- Check your UPI app’s transaction history to confirm successful withdrawals.
UPI cash withdrawal from ATMs marks a new era in India’s digital payment journey. With its cardless convenience, enhanced security, and user-friendly approach, it’s set to become a widely adopted method for cash access. As banks and ATMs across the country continue to enable this feature, users can enjoy seamless banking experiences with just a smartphone and UPI app in hand.