Introducing the UPI ATM: Cash Withdrawals Without the Need for a Debit Card

Have you ever found yourself in a challenging situation, desperately in need of cash, only to realize that you’ve left your wallet or debit card at home? If you have, you’re certainly not alone. However, worry not, as a solution has emerged: the UPI ATM, recently launched in India. As the name suggests, this innovation enables users to withdraw money from ATM machines using their UPI ID.

According to a report by ET, Hitachi has introduced the UPI-ATM, which is a bit different from your traditional ATM machine. Typically, when you want to withdraw money from your bank, you use a debit or credit card at an ATM. But with this new UPI-ATM, there’s no need for a card.

It’s officially known as the “Hitachi Money Spot UPI ATM,” and it made its debut at the Global Fintech Fest in Mumbai on September 5, 2023. What makes these UPI ATMs so remarkable is that they allow you to access your bank funds using a special mobile app called the United Payments Interface (UPI) instead of a physical card.

Here’s a breakdown of how you can utilize the UPI ATM:

1. Select Your Withdrawal Amount: To begin, determine the amount of cash you want to withdraw from the ATM. This is the sum you’ll receive in cash.
2. QR Code Display: After selecting the amount, the ATM will display a unique QR code on its screen. This QR code represents the chosen withdrawal amount.
3. UPI App Usage: To initiate the cash withdrawal, you’ll need to use a mobile phone app that supports UPI (United Payments Interface). This can be any of the UPI-enabled apps you already have on your phone.
4. Scan the QR Code: Once you’ve launched the UPI app, use it to scan the QR code displayed on the ATM’s screen. This step informs the ATM of the amount you wish to withdraw.
5. PIN Authorization: For security purposes, you’ll be prompted to enter a special PIN within your UPI app. This PIN functions as a secret code known only to you. Entering it grants authorization for the ATM to dispense the requested funds.
6. Cash Withdrawal: After correctly entering the PIN and authorizing the transaction, the ATM will begin dispensing the cash you requested. You can then collect your money and use it as needed.

Currently, many banks offer cardless cash withdrawals using mobile phones and a special code (OTP), but the UPI-ATM employs QR codes for cash withdrawals, making it a unique and convenient option.

The introduction of the UPI-ATM marks a significant advancement in banking by combining the convenience and security of UPI with traditional ATM functionality. This innovative approach ensures quick access to your funds, even in remote regions of India, without the need for a physical card. This is the assessment provided by the National Payments Corporation of India, highlighting the transformative potential of this technology in the banking sector.

Also Read

Digital Payment Apps Shine Bright at the Delhi G20 Summit with ‘Hello UPI

Uncovering ChatGPT’s Variability: A Recent Study Sheds Light on the Chatbot’s Accuracy