With the rapid evolution of digital banking, UPI (Unified Payments Interface) has emerged as a game-changer in the Indian financial ecosystem. Now, the introduction of UPI-based ATM withdrawals eliminates the need to carry a debit card. This contactless method ensures enhanced security, convenience, and ease of use for millions of users. In this blog, we’ll explore how to withdraw cash at ATM with UPI, its benefits, step-by-step process, security measures, and much more.
UPI ATM Cash Withdrawal
UPI ATM Cash Withdrawal is a cardless cash withdrawal method that allows users to withdraw cash from ATMs using their UPI-enabled mobile banking app instead of a physical debit or credit card. This feature enhances security and reduces dependency on carrying cards.
Introduced to make transactions more seamless, this method is expected to revolutionize cash withdrawals in India. Users can simply scan a QR code displayed on the ATM screen and authenticate the transaction using their UPI PIN.
Withdraw Cash at an ATM with UPI
The UPI ATM withdrawal feature offers several advantages over traditional card-based ATM withdrawals:
- Cardless Convenience: No need to carry a debit card.
- Enhanced Security: Reduces the risk of card skimming or cloning.
- Quick Transactions: Withdraw money faster with fewer steps.
- No Physical Contact: Reduces ATM touchpoints, promoting hygiene.
- Compatible Across Banks: Works on multiple banking apps and UPI platforms.
Guide to Withdraw Cash at ATM with UPI
Withdrawing money from an ATM using UPI is simple and involves the following steps:
1: Locate a UPI-enabled ATM: Not all ATMs support UPI withdrawals yet. Look for UPI ATM signage or check with your bank’s ATM locator.
2: Select UPI Cash Withdrawal: On the ATM screen, choose the option “UPI Cash Withdrawal.” A QR code will be displayed.
3: Open Your UPI App: Open any UPI-enabled app (Google Pay, PhonePe, Paytm, BHIM, etc.). Select the Scan & Pay option.
4: Scan the QR Code: Use your UPI app to scan the QR code displayed on the ATM screen.
5: Enter the Withdrawal Amount: Enter the amount you wish to withdraw (within ATM limits).
6: Confirm & Enter UPI PIN: Authenticate the transaction using your UPI PIN.
7: Collect Your Cash: Once verified, the ATM will dispense cash instantly.
Banks That Support UPI ATM Withdrawals
Here are some of the leading banks and financial institutions that have integrated UPI-based ATM cash withdrawal, including:
| Bank of Baroda | Arunachal Pradesh Rural Bank | Ujjivan Small Finance Bank |
| Union Bank of India | State Bank of India | Fincare Small Finance Bank |
| Equitas Small Finance Bank | Indian Bank | City Union Bank |
| Cosmos Bank | Suryoday Small Finance Bank | Yes Bank |
| GP Parsik Sahakari Bank Ltd | Canara Bank | Janata Sahakari Bank |
| Central Bank of India | The Mehsana Urban Co-op Bank | Bank of India |
| Andhra Pragathi Grameena Bank | Meghalaya Rural Bank | Federal Bank |
| Utkarsh Small Finance Bank | Andhra Pradesh Grameena Vikas Bank | Punjab National Bank |
| Chhattisgarh Gramin Bank | Punjab and Sind Bank | UCO Bank |
| Telangana Grameena Bank | Uttarakhand Gramin Bank | IndusInd Bank |
| Saurashtra Gramin Bank | HSBC | Rajasthan Marudhara Gramin Bank |
| Karur Vysya Bank | Karnataka Vikas Grameena Bank | – |
UPI ATM Cash Withdrawal Limits
While UPI-based withdrawals are secure, certain limits are in place:
- UPI ATM allows withdrawals of up to ₹10,000 per transaction.
- This limit is part of the existing daily UPI restrictions and may vary based on your bank’s policies.
- The National Payments Corporation of India (NPCI) does not impose any fees for UPI ATM transactions.
- Regular ATM fee structures are applicable, depending on your account type and the permitted number of monthly ATM withdrawals.
Security Benefits of UPI ATM Cash Withdrawals
With increasing ATM fraud, UPI-based withdrawals offer improved security features, including:
- No Card Cloning or Skimming: Since there’s no physical card involved, fraudsters can’t clone your debit card details.
- UPI Authentication Instead of PIN: Unlike traditional ATM PINs, UPI transactions require UPI PIN entry on your phone. Reduces the risk of shoulder surfing or PIN theft.
- QR Code-Based Transactions: QR codes are unique per transaction and cannot be reused. This adds an extra layer of security.
- Mobile Security: UPI transactions require multi-factor authentication (fingerprint, face ID, or PIN). If your phone is secured, so is your bank account.
Safety of Withdrawing Cash Using UPI
UPI-based ATM withdrawals are considered safer than traditional methods because:
- No physical card needed: which reduces the risk of theft.
- One-time QR Code: prevents unauthorized reuse.
- UPI PIN authentication: This ensures only the account holder can withdraw.
- No stored credentials: Transaction details aren’t stored in the ATM.
Note: Users should follow best security practices, such as:
- Keep their UPI PIN confidential.
- Using secure mobile banking apps.
- Avoiding public Wi-Fi while making transactions.
Future of UPI-Based ATM Withdrawals
With digital payments growing rapidly, UPI ATM withdrawals could become the standard in the coming years. Some expected developments include:
- Wider adoption across banks in India.
- Increased withdrawal limits for high-value transactions.
- Integration with international banking systems for global travelers.
- Advanced biometric authentication to replace PIN-based approvals.
Conclusion
The UPI ATM cash withdrawal system is a secure, fast, and card-free way to access your money on the go. By eliminating the need for debit cards, this feature provides enhanced security against fraud while ensuring seamless access to cash.
With major banks already implementing this feature, it’s time to embrace the future of cashless yet convenient banking. So, the next time you need cash, try withdrawing money at an ATM using UPI!
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Frequently Asked Questions
Q. Can I withdraw money using UPI in an ATM?
A. Yes, UPI-enabled ATMs allow cardless cash withdrawals. Simply scan the QR code displayed on the ATM using a UPI app, enter the amount, and confirm with your UPI PIN to get cash.
Q. How to withdraw cash from an ATM using UPI?
A. Go to a UPI-enabled ATM, select “UPI Cash Withdrawal,” scan the QR code using your UPI app, enter the withdrawal amount, authenticate with your UPI PIN, and collect your cash.
Q. What is the daily limit for UPI ATM withdrawals?
A. Most banks set a daily withdrawal limit of ₹10,000, with a per-transaction limit of ₹5,000. However, limits may vary by bank.
Q. Are there any charges for withdrawing cash via UPI?
A. Currently, most banks do not charge extra for upi atm cash withdrawal charges may apply after exceeding the bank’s free withdrawal limit.
Q. How to enable UPI cash withdrawal on my bank account?
A. No activation is needed. If your bank supports UPI, you can use any UPI-enabled ATM for cash withdrawal through your linked UPI app.
