National Payments Corporation of India (NPIC) is also introducing UPI, which will allow users to withdraw cash from ATMs through UPI. The Interoperable Cardless Cash Withdrawals (ICCW) feature allows people to withdraw money from ATMs even if they don’t have a card.
Withdraw cash through UPI
The Reserve Bank of India (RBI) has also asked banks to provide ICCW options for ATMs to prevent card fraud such as cloning, encryption and device tampering. Cardless ATM cash withdrawal is available at ATMs of State Bank of India (SBI), Punjab National Bank (PNB), HDFC Bank and also other select banks.
UPI cash withdrawal is available through any UPI payment provider app like GooglePay, PhonePe, Paytm. How does the whole process work?
How to withdraw cash from an ATM using UPI
Visit any ATM.
You need to find and select the “Withdraw Cash” option on the screen.
Next, select the UPI option.
Quick Response (QR code) appears on the ATM screen.
Now open the UPI app on your smartphone.
Scan the QR code on the ATM screen.
Enter the amount you want to withdraw. You can withdraw cash up to Rs.5000.
Enter your UPI PIN and click on the ‘Hit Proceed’ button.
Now you can withdraw money from an ATM.
In particular, banks do not charge extra for cardless cash withdrawals from ATMs through UPI. According to the Reserve Bank of India (RBI), “On-us/Off-US ICCW transactions are processed without any non-prescribed charges (commissions and client fees).”
Meanwhile, charges/fees for using ATMs from other UPI-enabled banks will remain the same as the charges for withdrawals from existing cards. Customers can perform five free transactions per month at their own bank’s ATMs and three free withdrawals at other banks’ ATMs. They will then be charged R21 for each transaction.