Tuesday, June 25, 2024

Hitachi Payment Services launched the first UPI ATM in partnership with the National Payment Corporation of India on September 5 during the Global Fintech Fest in Mumbai. 

Finally, UPI ATM is here, allowing users to go with secure cardless withdrawal. As we all know, UPI is an digital payment platform operated by NPCI and through which users can easily transfer money from bank accounts. This New Initiative offers a groundbreaking solution for easy access to funds. 

UPI-ATM facilitates cardless withdrawal and instant money transfer between different bank accounts. Unlike the Traditional ATM’s, They do not require any physical debit cards or ATM visits, simplifying the process of cash withdrawal.  Withdrawing money using the UPI-ATM is easier than you think.  

Let’s dive in together and have a better understanding of UPI ATM. 

Key Highlights

  • India’s first UPI-ATM was launched on September 5 by a subsidiary of Japan-Hitachi Payment Services.
  • Cardless cash withdrawal UPI will eliminate the need for physical debit cards or frequent ATM visits. 
  • Users just need to select UPI cash withdrawal, scan the code, and confirm their transaction by entering their PIN. 
  • This cardless transaction features a withdrawal limit of Rs.10,000 and streamlines access to funds. 

What is UPI ATM?

The UPI ATM, introduced by Hitachi Payment Service, revolutionises cash transactions by offering a cardless withdrawal system. This innovative service simplifies the withdrawal process, eliminating the need for physical cards. Users can now swiftly and securely withdraw cash from ATMs using their Unified Payments Interface (UPI) PIN instead of a traditional ATM PIN.

UPI ATM transactions streamline and offer more convenience compared to conventional ATM transactions, which require a physical card and PIN. Users initiate withdrawals by authenticating their identity with a UPI PIN, ensuring enhanced security. With a minimum withdrawal amount of Rs. 100, this service caters to a wide range of transaction needs, facilitating quick access to cash.

Overall, UPI ATM enhances the efficiency and security of cash transactions, offering users a seamless and hassle-free banking experience. Its user-friendly interface and advanced security features make it a preferred choice for modern consumers seeking convenience and reliability in their financial transactions.

How does UPI ATM work?

We all have seen that video of Fintech influencer Ravisuntajani Kumar, who briefed us on how we can withdraw cash from UPI ATMs without using a debit card. 

Well, it is quite obvious that a UPI ATM works differently than a normal ATM. Unlike a normal ATM, you don’t need to carry your debit to complete transactions at UPI ATM. 

It is well-connected to UPI payment infrastructure, and when a customer initiates a UPI transaction on an ATM, it sends a request to the NPCI server to debit the customer’s account and release cash for them. 

A customer has to authenticate the transaction using their UPI PIN, and it will be verified by the bank server. Once it is authenticated, it will dispense cash to the customer. 

Hitachi UPI ATM is built on Android OS, unlike its proprietary software. In the future, we may also see all such capabilities in UPI ATM. 

Step-By-Step Guide

  • Withdrawing money from UPI ATM is a very simple, secure, and efficient way to withdraw via UPI. Just follow the steps for UPI ATM Cash Withdrawal. 
  • First, just select the amount you want to withdraw using an ATM. 
  • Then Scan the QR code will be displayed on the screen to select the amount.
  • Scan the QR code on your Phone Using the UPI app available on your Phone.
  • Enter the UPI Number to initiate the transaction. 
  • Once you process the transaction, the ATM will disburse the cash in a few seconds. 

Advantages of UPI ATM withdrawal

UPI Card ATM is a new cashless option launched by Hitachi Payment in collaboration with the NPCI that offers several benefits for the common people. 

Convenience: 

UPI ATMs are very convenient as they do need any physical card and a handy PIN to withdraw cash from the ATM.  They are effortless to withdraw money. Customers can easily use their phones to scan UPI and withdraw cash. This makes the process of withdrawal seamless for users.

Security:

The second main concern with Physical ATM cards is security. But with the arrival of the cardless cash withdrawal UPI, managing security has become really easy. Customers do not have to worry about losing their cards or exposing their details to fraudsters. 

Cost-effectiveness: 

One of the best things about UPI ATM cash withdrawal is that you do not have to pay any fee for using these services.  UPI Cash transactions are completely free compared to physical cards. They also have operational and maintenance costs, as they do not need to install card readers or deal with card-related issues.  

How UPI ATM will be different from the cashless card withdrawal 

At present, there are many banks that offer cashless withdrawal services. Cashless card withdrawal services offered by the banks depend on the Mobile number and OTP’s. Whereas the newly introduced UPI-ATM withdrawal functions through a QR code. UPI -ATM is available for those who have installed UPI application On iOS or Android. Apart from that, UPI-ATM is also different from physical ATM withdrawal, eliminating the need for a card. 

The launch of UPI ATM will be a significant milestone in banking services, eliminating the need for physical cards and seamlessly integrating the convenience of security into traditional ATMs. This innovative approach is launched to support a convenient infrastructure to provide cash even in remote areas. 

Who can use UPI ATMs?

The introduction of UPI ATM marks a significant milestone in the banking sector, providing unparalleled convenience for cash withdrawals. Currently, the National Payments Corporation of India (NPCI) has not imposed any specific conditions for utilising this service. As a result, virtually anyone can leverage the UPI ATM feature for cash withdrawals.

Accessible through both Android and iOS platforms, the UPI ATM functionality is available to a broad spectrum of users. Whether individuals hold accounts in public sector banks, private banks, or even small financial institutions, they can seamlessly utilise this innovative service. Additionally, UPI ATM caters to users across diverse demographics, ranging from tech-savvy individuals to those less familiar with digital banking.

Overall, the inclusivity and user-friendly nature of UPI ATM democratise cash withdrawal processes, empowering a wide array of individuals to enjoy the benefits of streamlined and secure transactions, regardless of their banking preferences or technological proficiency.

FAQs

What is UPI-ATM? 

UPI-ATM is a digital platform service operated By NPCI and offers instant cash withdrawal through QR codes and money transfers between bank accounts. 

How do you withdraw money through UPI in an ATM machine?

Cash withdrawal using ATM UPI is really simple; all you have to do is just install UPI on your Android or iOS. Just select the amount and click on it to generate the code. Now, scan the code and complete the transaction through the app. 

What is the amount to be withdrawn from the UPI ATM? 

In the UPI ATM, The transaction limit is upto 10,000 per transaction. This is part of your daily provided limit; you can withdraw the same daily. 

Is there a fee for using UPI ATM services?

UPI ATM cash withdrawal is completely free and secure. You don’t need a debit card to insert on the machine. You can scan the QR code on your mobile, enter the amount, and proceed. 

Who can use UPI ATMs?

UPI Atm’s are accessible to anyone who has a UPI application on their Phone. There are no specific conditions set by NPCI for ATM UPI cash withdrawal.

Are UPI ATMs available nationwide, and how can I find one near me?

UPI atm’s are rolled in all parts of India. To find it nearest, you can check with your bank or the ATM locators provided by NPCI.  

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