India's First UPI ATM Launched: Users Now Can Withdraw Money Without Using Debit Card; Here’s How
India's First UPI ATM Launched: Users Now Can Withdraw Money Without Using Debit Card; Here’s How
India has been making significant strides in the field of financial technology (fintech) in recent years, and there are several reasons why it is considered a leader in this industry globally.
Has it every happned that you ever forgotten your wallet or debit card when you needed cash outdoors? The UPI ATM is a new innovation that allows you to withdraw money from ATMs without a card. Just scan a QR code on the ATM screen with your UPI app and enter your PIN to withdraw cash. Magical right? Yes, it actualy is.
The UPI ATM is a white label ATM that is owned and operated by non-banking entities. It is available to customers of participating banks. The withdrawal limit for the UPI ATM is Rs 10,000 per transaction. To use the UPI ATM, you will need to have a UPI app installed on your smartphone. You will also need to have a bank account that supports UPI.
The UPI-ATM is a type of ATM that allows users to withdraw cash without using a debit or credit card. Instead, users can use their UPI ID and PIN to authenticate the transaction, as per a report in the Business Standards.
Here's How To Use UPI-ATM
To withdraw cash from a UPI-ATM, you will need to:
- Select the "UPI cash withdrawal" option on the ATM screen.
- Enter the amount you want to withdraw.
- The ATM will display a QR code on the screen.
- Scan the QR code using your UPI app.
- Enter your UPI PIN.
- The ATM will dispense the cash.
Hitachi Payment Services, in collaboration with the National Payments Corporation of India (NPCI), has come up with this new innovation which is expected to enhance security by eliminating the risk of card skimming by fraudsters.
How It Eliminates Risk of Card Skimming ?
Cardless cash withdrawals can help eliminate the risk of card skimming because they do not involve the physical use of a debit or credit card at an ATM.
Card skimming is a type of fraud where criminals install devices on ATMs or point-of-sale terminals to capture card information, including the card number and PIN, when customers insert their cards.
How it benefits?
According to a report on The Times of India, the company emphasized that its cutting-edge Money Spot UPI ATM aims to bolster financial inclusion by providing easy access to banking services, especially in regions where traditional banking infrastructure and card usage are limited.
UPI ATM is built on the Android operating system, opening up exciting possibilities for transitioning from legacy transaction processing and ATM management systems to cutting-edge solutions aligned with evolving technology. Hitachi Payment Services stands as the sole White Label ATM operator that also provides cash deposit functionality, accessible at a network of over 3,000 ATM locations.
Sumil Vikamsey, Managing Director and Chief Executive Officer of Hitachi Payment Services' cash business, highlighted the significance of UPI as the country's fastest-growing payment mode, accounting for over 50% of digital transaction volumes, TOI reported.
Hitachi Payment Services offers a comprehensive array of payment solutions, spanning ATM services, cash recycling machines, white label ATMs, POS solutions, toll and transit solutions, and payment gateway solutions.
UPI-ATM A Significant Development
The UPI-ATM is a significant development in the banking sector because it combines the convenience and security of UPI with the familiarity of traditional ATMs. This innovative solution allows users to withdraw cash quickly and easily, even in remote parts of India, without the need for a physical card.
The National Payments Corporation of India (NPCI) has hailed the UPI-ATM as a "big step" in the development of India's digital payments ecosystem. The NPCI believes that the UPI-ATM will make it easier for people to access their money and will help to promote a cashless society.
