Now Cash Withdrawals from ATMs via UPI QR Code Scanning
Now, you can make payments through the Unified Payment Interface (UPI) without the need for a physical ATM card. In Mumbai, the Global Fintech Festival has showcased the UPI ATM. This ATM allows you to withdraw money by scanning a QR code, without the requirement of a physical card. It was shared in a video by the Union Minister Piyush Goyal on Thursday.
This ATM has been developed by the National Payments Corporation of India (NPCI). The UPI ATM functions similar to a regular ATM but does not require a card. Currently, it only supports the BHIM UPI app, but it will soon be available on other apps like Google Pay, PhonePe, and Paytm in a short period. This technology is being introduced to various segments of society.
How Does the System Work?
- Select UPI Cardless Cash on the ATM Machine.
- Choose an Amount, Such as 100, 500, 1000, 2000, or 5000.
- The ATM Will Display a QR Code.
- Scan It from the Application.
- Enter the UPI PIN.
- Money Will Then Be Dispensed.
ATM Name: ‘Money Spot UPI ATM’
The Japanese company Hitachi has also developed such ATMs. This ATM is named ‘Money Spot UPI ATM’. It is available at more than 3000 locations across the country. Hitachi Payment Services is the sole white-label ATM (WLA) operator that provides cash deposit services. These ATM machines, owned, maintained, and operated by non-banking service providers, are referred to as WLAs.
RBI Issued New Rules in May 2022
Last year, on May 19th, the Reserve Bank of India (RBI) had released information about providing the facility of cash withdrawal through UPI. In the circular, RBI stated that all banks, ATM networks, and white-label ATM operators (WLAOs) should provide the ‘Inter-Operable Cardless Cash Withdrawal’ (ICCW) facility on their ATMs.
UPI Transactions Surpass 1 Trillion in August
In August 2023, the number of UPI transactions exceeded 1,024 crore. Total transactions’ value in August amounted to ₹15.18 lakh crore. In August 2022, a total of 658 crore transactions were done through UPI. This year, in July, UPI transactions amounted to ₹996 crore.
