FP directionsNov 23, 2022 at 07:53:01 IST
Introduced in 2016, United Payments Interface (UPI) has seen explosive growth in India. The reason why UPI is so popular as a payment system is that it makes online payments and money transfers incredibly simple by combining different bank accounts into a single mobile application.
The latest feature addition from National Payments Corporation of India (NPCI), which operates UPI, gives the option to withdraw money from any bank ATM using only UPI apps including Google Pay, Phone Pay and Paytm. Customers will not have to worry about carrying their cards or remembering their PINs thanks to this new function called Interoperable Cardless Cash Withdrawal (ICCW).
In a bid to combat card-related frauds like card cloning, skimming and device tampering, the Reserve Bank of India has mandated banks to introduce this ICCW option in ATMs. Currently only a few banks offer the option to withdraw cash without a card. But according to the new rules, customers will now be able to withdraw from ATMs of any bank, not just their own.
Steps to follow while withdrawing cash from ATMs using UPI:
- Go to any bank ATM and select the “Cash Withdrawal” option from the menu.
- Choose “UPI” from the list now.
- A QR code will appear on the screen.
- On your phone, launch the UPI based app (eg Google Pay, PhonePe).
- Turn on the QR code scanner feature of the UPI based mobile application.
- Scan the QR code that appears on the ATM screen.
- Enter the amount you want to withdraw.
- Type in your UPI PIN.
- Select “Hit Proceed” from the options.
- ATMs will provide you with the required cash.
Notably, there will be no additional charges for UPI-enabled cardless cash withdrawals from ATMs. The fee for using a different bank’s ATM to make a cash withdrawal using this cashless withdrawal mode will not change from the existing card withdrawal limits.