India’s digital payment system, Unified Payments Interface (UPI), which is primarily used for money transfers between users, will now enable cash withdrawals without needing an ATM card/PIN.
The UPI ATM was launched by Hitachi Payment Services in partnership with the National Payments Corporation of India on September 5, during the Global Fintech Fest in Mumbai, to revolutionise the way people withdraw cash from ATMs.
With this, Any customer of participating banks can walk to a white-label ATM to withdraw cash effortlessly by using any UPI application, thereby eliminating the conventional method of using physical cards and streamlining the transaction process. White-label ATMs are those that are owned and operated by non-bank companies.
How does it work?
Withdrawing cash from a UPI ATM is quite simple. The customer needs to select the 'UPI cash withdrawal' option on the ATM and then choose the withdrawal amount. After this, a single-use dynamic QR code appears on the ATM screen.
Customers can use any preferred UPI app to withdraw cash by scanning the QR code and entering their UPI PIN within the app. Once the transaction is successful, the ATM validates it and dispenses the cash.
It's worth noting that the withdrawal limit for a UPI ATM is Rs 10,000 per transaction, which is included in the existing daily UPI limit.
The video, posted by Ravi, has caught the attention of many notable personalities, including billionaire Anand Mahindra and Piyush Goyal.
“This UPI ATM was apparently unveiled at the Global Fintech Fest 2023 in Mumbai on September 5. The speed at which India is digitising financial services & making them consumer-centric as opposed to corporate-centric (Alarm bell for credit card companies?) is simply dazzling. I just have to make SURE I don’t misplace my cellphone!” Billionaire Anand Mahindra posted on X.
This UPI ATM was apparently unveiled at the Global Fintech Fest 2023 in Mumbai on September 5. The speed at which India is digitising financial services & making them consumer-centric as opposed to corporate-centric (Alarm bell for credit card companies?) is simply dazzling.… pic.twitter.com/krBXhbc9Qh— anand mahindra (@anandmahindra) September 7, 2023
Minister of Commerce & Industry Piyush Goyal also shared Ravi’s video and wrote, “UPI ATM: The future of fintech is here! 💪🇮🇳”
UPI ATM: The future of fintech is here! 💪🇮🇳 pic.twitter.com/el9ioH3PNP— Piyush Goyal (@PiyushGoyal) September 7, 2023
Needless to say, UPI is already achieving new milestones. Recently, for the first time, UPI crossed 10 billion transactions with a value of Rs 15.18 lakh crore in August 2023.