You can now withdraw cash from ATM using UPI: Here's how this will work
Touted as Hitachi Money Spot UPI ATM, it allows customers to withdraw cash without using a debit or credit card.
 "You can now withdraw cash from ATM using UPI: Here's how this will work")
Hitachi Payment Services earlier this week launched India’s first UPI-ATM, in association with the National Payments Corporation of India, offering secure cardless cash withdrawals.
The company’s new offering will connect users to the organization’s UPI payments system and eliminate the need for physical cards.
UPI ATM allows customers of participating banks to withdraw cash without using an ATM or debit card. White-label ATMs are those that are owned and operated by non-bank entities.
“The Hitachi Money Spot UPI ATM would provide customers a unified and secure user experience while offering them the convenience of card-less cash withdrawals,” the company said in a news release.
Currently, UPI dominates the retail sector in India, with 48 per cent of retail transactions happening via the platform.
How does the UPI-ATM work?
- UPI-ATM is accessible to UPI users who have a UPI application installed on their Android or iOS devices.
- A UPI-ATM allows users to withdraw cash from multiple accounts using the United Payments Interface (UPI) app.
- All you need is your mobile to complete the cash withdrawal process
- The customer selects the ‘UPI cash withdrawal’ option on the ATM and is prompted to select the withdrawal amount. Following this, a single-use dynamic QR code is displayed on the ATM screen.
- The customer needs to scan the QR code using any UPI APP and authorize the transaction with a UPI PIN on the mobile (UPI APP) to get cash from the ATM.
- However, the transaction limit is up to Rs 10,000/- per transaction.
- This will be part of the existing UPI per day limit and as per the limits set by the Issuer Bank for UPI-ATM transactions.
How is it different from cardless cash withdrawals offered by banks?
Currently, card-less cash withdrawals rely on mobile numbers and OTPs, while UPI-ATM operates through QR-based UPI cash withdrawals.
The UPI ATM is seen as a positive step towards preventing issues such as card skimming, a type of financial fraud where devices are installed at ATMs or point-of-sales terminals to gather card information such as PIN and card number to siphon off cash.
As of now Hitachi Payment Services is the only WLA operator who also offers cash deposit function and has access to a network of over 3000 ATM locations.