How to Withdraw Cash from ATM via UPI

Unified Payments Interface (UPI) has revolutionized digital payments in India, making transactions seamless and convenient. UPI's capabilities have expanded to include cash withdrawals from ATMs, eliminating the need for physical debit or credit cards. Here’s a detailed look at how this technology works and its real-time benefits for users.

UPI-ATM: Functionality and User Benefits

The National Payments Corporation of India (NPCI) has approved UPI-enabled cash withdrawals, allowing users to access cash without carrying their debit cards. This new feature was highlighted in a MySmartPrice report, which was a successful test run in a Mumbai ATM. Although the process is more intricate than traditional card withdrawals, it is set to offer significant advantages.

How to Withdraw Cash from ATM via UPI

Enter Phone Number: Begin by entering your phone number at the ATM kiosk.

Scan QR Code: A QR code will then appear on the ATM screen.

Open UPI App: Open any UPI-enabled app, such as Google Pay, Paytm, or PhonePe, and scan the QR code.

Enter Amount and PIN: Enter the amount you wish to withdraw and your UPI PIN. The transaction takes around 30 seconds to process, so there is no need to panic if the money is debited from your account before you receive the cash.

It’s important to note that withdrawals up to ₹1000 are typically free of charge. However, transactions for higher amounts might incur a 1% fee.

UPI-ATM Cash Withdrawals: Advantages

The introduction of UPI-enabled cash withdrawals offers several benefits:

Multiple Bank Options: Since UPI apps are linked to multiple bank accounts, users are not limited to withdrawing cash from a specific bank’s ATM. This flexibility is particularly useful in areas with limited ATM options.

Wide App Compatibility: This feature supports a variety of UPI apps, including PhonePe, Google Pay, Paytm, and Amazon Pay, among others.

No OTPs Required: Unlike traditional card withdrawals that may require OTPs or pre-authorized approvals, UPI-based withdrawals are straightforward and hassle-free.