Introducing UPI ATM: Card-less Cash Withdrawals

In a groundbreaking partnership between the National Payments Corporation of India (NPCI) and Hitachi Payments, India welcomes its very first UPI ATM. This innovative addition to the financial landscape promises secure card-less cash withdrawals, opening up new avenues for banking convenience. Here, we cover everything you need to know about this exciting development – what exactly is a UPI ATM, how UPI ATM cash withdrawals work, and where you can find these futuristic machines.

The UPI ATM Unveiled

A UPI ATM is the result of a collaboration between Hitachi Payments and NPCI. Unlike traditional ATMs that rely on physical debit cards, a UPI ATM facilitates cash withdrawals by validating your transaction through a UPI PIN. Even small amounts, starting from just Rs. 100, can be withdrawn using this service.

How Does the UPI ATM Work?

A UPI ATM operates quite differently from a standard ATM:

1. No Debit Card Required: Unlike traditional ATMs, you don’t need your debit card to access cash at a UPI ATM.
2. Connected to UPI Infrastructure: The ATM is linked to the UPI payments infrastructure. When a customer initiates a UPI transaction, the ATM sends a request to the NPCI/bank server to debit the customer’s account and credit the merchant – much like how a UPI payment works.
3. Authentication via UPI PIN: To complete the transaction, the customer authenticates it using their UPI PIN. The bank server verifies this PIN.
4. Cash Dispensation: Once the transaction is authenticated, the ATM dispenses the requested cash to the customer.

It’s noteworthy that the Hitachi Money Spot UPI ATM runs on Android OS, enabling it to leverage Android features and connectivity. This opens the door to exciting possibilities, much like the recent UPI services introduced by RBI, including Hello! UPI and BillPay Connect, which enable voice-enabled payments in native languages.

When and Where Was the UPI ATM Launched?

The UPI ATM, created in partnership with Hitachi and NPCI, made its debut in Mumbai on September 5th during the Global Fintech Fest. While the official commercial launch date is yet to be confirmed, major banks like SBI, HSBC, Canara Bank, BOB, Central Bank of India, and others have already gone live on this card-less ATM machine. Customers of these banks can use popular UPI apps like Paytm, BHIM UPI, GooglePay, PhonePe, and more to complete transactions. Expect the UPI ATM to roll out in more cities and areas soon.

How to Withdraw Cash from a UPI ATM?

Here’s how you can access cash from a UPI ATM:

1. Locate a UPI ATM: Find a UPI ATM near you.
2. Choose “UPI Cardless Cash”: Select “UPI Cardless Cash” at the bottom of the screen.
3. Select Your Preferred Denomination: Pick your preferred cash denomination from options like Rs. 100, Rs. 500, Rs. 1000, Rs. 2000, and Rs. 5000.
4. Customize the Amount: Alternatively, select “Any Other Amount” and input your desired cash withdrawal amount.
5. Generate a QR Code: In seconds, a QR Code will appear on the screen.
6. Scan and Complete the Transaction: Open any UPI app, scan the QR Code, and finalize the transaction.

You’ve now successfully withdrawn cash from the UPI ATM without needing your debit card.

Location Availability of UPI ATMs

As of now, the UPI ATM has been launched in Mumbai. Since it’s a white-label ATM machine, it’s likely to appear in different locations across the country. As NPCI and Hitachi expand their UPI ATM network, you can look forward to accessing this service in your area soon. We’ll keep you updated as new UPI ATM locations are announced.

The UPI Revolution Continues

UPI (Unified Payments Interface) is a rapidly growing service in India, with NPCI leading the charge. Currently accounting for nearly 50% of digital payments in India, UPI is projected to reach 1 billion transactions daily in the next three years. Additionally, RBI foresees that 90% of retail digital transactions will be UPI-based within the next five years.

The introduction of the UPI ATM by NPCI and Hitachi Payments marks another milestone in India’s digital payment revolution. This innovation promises greater convenience and security for banking customers while contributing to the widespread adoption of digital payment methods.

Share Your Thoughts

What are your thoughts on the UPI ATM initiative by NPCI and Hitachi Payments? Feel free to share your opinions in the comments below. As this revolutionary service expands, it’s sure to reshape the way we think about traditional banking. Stay tuned for more updates on this exciting development in India’s digital payment landscape.