Hitachi Payment Services, in collaboration with the National Payments Corporation of India, unveiled India’s pioneering UPI-ATM on September 5 at the Global Fintech Fest in Mumbai. This novel innovation champions secure cardless cash withdrawals.
A UPI-ATM, categorized as a white-label ATM, empowers users of affiliated banks to extract cash without needing an ATM or debit card. It is essential to note that white-label ATMs are exclusively owned and managed by entities outside the banking sector.
To initiate a transaction, the user must opt for the ‘UPI cash withdrawal’ feature on the ATM. Subsequently, the machine prompts the user to specify the desired withdrawal sum. Upon confirmation, the ATM showcases a unique, one-time-use QR code. To complete the process, users must scan this QR code with any UPI-enabled mobile application and authenticate the transaction by keying in a PIN on their respective mobile platform. Once verified, the ATM promptly releases the requested amount.
There’s a ceiling of Rs 10,000 for each UPI-ATM transaction. This limit is an extension of the prevalent daily UPI cap and is subject to the regulations set by the concerned bank for UPI-ATM operations.
Drawing a parallel with the prevalent cardless cash withdrawal facilities banks offer, UPI-ATM assures comparable transactional simplicity. However, while traditional cardless methods rely on mobile numbers and OTPs, the UPI-ATM hinges on QR codes for its operations.
