What is UPI ATM?
A UPI ATM is an ATM that allows you to withdraw cash using the Unified Payments Interface (UPI) instead of a debit card. UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI). It allows you to send and receive money instantly between bank accounts using a smartphone app.
India’s first UPI ATM uses QR code-based withdrawal, while most cardless cash withdrawal systems use OTP-based withdrawal. This means that you can withdraw cash without entering an OTP, simply by scanning a QR code generated by the ATM. You also do not need to use a dedicated app to withdraw cash from a UPI ATM.
India’s First UPI ATM Launched, Eliminating the Need for ATM Cards. UPI ATMs to Revolutionize the Way Indians Withdraw Cash
Powered by Interoperable Cardless Cash Withdrawal (ICCW) technology, which facilitates cash withdrawals without the need for a physical card, the UPI ATM streamlines QR-based transactions, eliminating the requirement for a physical card.
Here is a table that summarizes the key differences between UPI ATMs and cardless cash withdrawal systems:
| Feature | UPI ATM | Cardless cash withdrawal system |
|---|---|---|
| Authentication method | QR code | OTP |
| Dedicated app required | No | Yes |
| Expected coverage | Wider | Narrower |
| Security | More secure | Less secure |
| Convenience | More convenient | Less convenient |
UPI ATMs offer a number of benefits over cardless cash withdrawal systems, including:
- More secure: You do not need to enter sensitive information like your OTP.
- More convenient: You can use any UPI app that is supported by the ATM.
- Expected to have wider coverage: They do not require banks to install any special hardware or software.
UPI ATMs are a new and innovative way to withdraw cash. They offer a more secure, convenient, and accessible way to withdraw cash than traditional ATMs.
In addition to the benefits listed above, UPI ATMs also offer the following features:
- Multiple account withdrawals: You can withdraw cash from multiple accounts linked to UPI.
- Single-use dynamic QR codes: Each transaction uses a unique QR code, which helps to ensure security.
- Faster and safer transactions: UPI ATM transactions are typically faster and safer than OTP-based transactions.
UPI ATMs are expected to become more popular in the coming years, as they offer a number of advantages over traditional ATMs.
To carry out a cash withdrawal from a UPI ATM, you must follow these steps:
- Select the desired withdrawal amount.
- Scan the QR code displayed on the ATM screen using your UPI app.
- Enter your UPI PIN to authorize the transaction.
- Collect your cash.
UPI ATMs represent an innovative and secure method of cash withdrawal, offering heightened convenience and accessibility compared to traditional ATMs.
This innovation marries the popularity and security of UPI with the widespread availability of ATMs.
One of the primary benefits of UPI ATM functionality is the ability for customers to withdraw cash from multiple accounts linked to UPI. Transactions at UPI ATMs are also swifter, more convenient, and secure, as they generate a unique QR code for each transaction, ensuring a safe banking experience.
Bank of Baroda (BoB) has pioneered the UPI ATM facility, allowing for QR-based cash withdrawals at its network of over 6,000 ATMs nationwide. Other banks are expected to follow suit in the near future.
