India’s First UPI ATM: How It Works and How It’s Different from Cardless Cash Withdrawals

The UPI ATM works by using the Unified Payments Interface (UPI), a real-time payments system developed by the National Payments Corporation of India (NPCI). To withdraw cash from the ATM, users first need to download a UPI-enabled app on their smartphone. Once the app is installed, users can open the app and scan the QR code on the ATM screen. The app will then generate a one-time password (OTP) that needs to be entered into the ATM to complete the transaction.

The UPI ATM is different from traditional cardless cash withdrawals in several ways. First, it does not require users to share their mobile number with the ATM operator. Second, it allows users to withdraw cash from multiple bank accounts linked to their UPI app. Third, it has a higher transaction limit of up to ₹10,000 per transaction.

The UPI ATM is a welcome addition to the Indian payments landscape. It offers a secure and convenient way for users to withdraw cash without having to carry an ATM card. The ATM is also expected to be popular with merchants who want to offer cashless payment options to their customers.

Here are some additional details about the UPI ATM:

  • It is compatible with all major UPI apps, including Google Pay, Paytm, and PhonePe.
  • The transaction limit is ₹10,000 per transaction, which is aligned with the existing UPI daily limits.
  • The ATM is accessible to UPI users who have a UPI app installed on their Android or iOS smartphones.
  • The ATM is located at the Hitachi Payment Services office in Pune.

The UPI ATM is a significant milestone in the development of the Indian payments ecosystem. It is expected to play a major role in promoting cashless payments in the country.