UPI ATM explained: What is the new UPI service that Anand Mahindra is talking about

UPI ATM Explained: NPCI (National Payments Corporation of India) is hosting the Global Fintech Fest (GFF) in Mumbai wherein it has launched a bunch of UPI-based features to make digital transactions faster and easier. The organisation has already launched UPI Lite X functionality that enables UPI payments in offline mode, and Hello UPI that uses voice commands for making UPI payments. In addition to that, NPCI has also introduced what is being dubbed as India’s first UPI ATM.

This initiative also got a shout out from Anand Mahindra who lauded NPCI for its consumer-centric approach. “The speed at which India is digitising financial services & making them consumer-centric as opposed to corporate-centric (Alarm bell for credit card companies?) is simply dazzling,” he wrote in a post on X (formerly Twitter).

This UPI ATM was apparently unveiled at the Global Fintech Fest 2023 in Mumbai on September 5. The speed at which India is digitising financial services & making them consumer-centric as opposed to corporate-centric (Alarm bell for credit card companies?) is simply dazzling.… pic.twitter.com/krBXhbc9Qh

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NPCI launches UPI Lite X, Hello UPI for voice-enabled UPI payments in India: Check details

— anand mahindra (@anandmahindra) September 7, 2023

So, what is a UPI ATM?

UPI ATM is an ATM that enables UPI users to withdraw cash using the supported UPI apps instead of a conventional debit card or a credit card. It is a White Lable ATM, which is essentially an ATM owned and operated by a company other than a bank. In this case, NPCI has partnered with Hitachi Payments Services to introduce a UPI ATM in India.

How is the UPI ATM different from a conventional ATM?

There are several differences between a conventional ATM and a UPI ATM. First of all, a conventional ATM is owned by a bank, and it requires the users to insert a debit card or a credit card to withdraw the requested amount. On the other hand, a UPI ATM is owned by a company that does operate in the banking sector and it doesn’t require the user to insert any card in the machine for withdrawing cash. Instead, it uses QR codes for enabling transactions.

But what about cardless cash withdrawals?

Some banks in India, such as SBI and HDFC Bank, offer cardless cash withdrawal services to their customers. However, this feature comes with some limitations. First of all, users need to raise a request in the bank’s apps to enable the transaction. In addition to this, users need to visit their specific bank’s ATMs to complete the transaction. Or in other words, an HDFC Bank customer can withdraw cash only at an SBI Bank ATM and not at an ATM by any other bank. However, a UPI ATM can be used to withdraw cash from any supported UPI app.

Is a UPI ATM safe?

Withdrawing money from a UPI ATM is as secure as making payments using UPI as it uses QR codes and one-time permissions within the UPI to make a transaction.

How to use a UPI ATM to withdraw money?

Here is a step-by-step guide for you:

Step 1: Tap the UPI Cardless Cash option on the screen of the UPI ATM.
Step 2: Select the amount that you want to withdraw.
Step 3: Now a QR code will be displayed on the ATM’s screen. Open your UPI app and scan the QR code.
Step 4: Select the bank account from which you want to withdraw money and then tap the Confirm option.
Step 5: Now you will see a pop-up that will show you all the details regarding the transaction. Tap the Proceed button.
Step 6: Add your PIN code and then tap OK.

Once you do this, you will get a successful transaction message in your UPI app and the ATM will disburse the request amount.