The National Payments Corporation of India (NPCI) and Hitachi Payment Services, a division of the Japanese company Hitachi, have jointly launched UPI-ATM as a White Label ATM (WLA). Customers can withdraw cash from this Hitachi Money Spot UPI ATM without using a debit or credit card.
On September 5, 2023, the Hitachi Money Spot UPI ATM was introduced at the Global Fintech Fest 2023 in Mumbai. The days of having to bring your debit or credit cards to ATMs in order to withdraw cash will be ended if these UPI ATMs are expanded to more places. You can use a UPI-ATM to withdraw money from your bank accounts using UPI-compatible software.
What is UPI ATM?
UPI ATM, or Unified Payments Interface (UPI) ATM, is a type of ATM that allows users to withdraw cash without a physical ATM card. Instead, users can use their UPI ID and PIN to generate a QR code, which they can then scan at the ATM to withdraw cash.
UPI ATMs are a relatively new development in India, but they are quickly becoming more popular. This is because they offer a number of advantages over traditional ATMs, including:
- They are more secure, as there is no risk of your ATM card being lost or stolen.
- They are more convenient, as you can withdraw cash from any UPI ATM, regardless of the bank that issued your UPI ID.
- They are more accessible, as they can be found in more places, including remote areas.
UPI-ATM: Key features
| Device Name | NPCI UPI ATM Machine |
| Developed by | Hitachi and NPCI |
| Purpose | Cardless Withdrawal from Bank Account |
| Type of Machine | ATM |
| Type of ATM | White Label ATM (WLA) |
| Who Can Buy | Anyone Can Buy |
| How to Use | By UPI App |
| Valid UPI App | GPay, PhonePe, PayTM and all others |
| NPCI UPI ATM Machine Features | Cardless Withdrawal, By Card Withdrawal, UPI to Cash and others |
| NPCI Website | npci.org.in |
- Interoperable.
- Transaction without a card.
- The maximum transaction amount per transaction is 10,000. It will count toward the current UPI daily limit and in accordance with any restrictions placed on UPI-ATM transactions by the Issuer Bank.
- Convenience, such as not needing to carry a card when using an ATM.
- can use the UPI APP to withdraw money from numerous accounts.
How to withdraw money from UPI-ATM
Are you unsure about how it will operate? According to Sumil Vikamsey, Managing Director & CEO – Cash Business, Hitachi Payment Services, “The UPI-ATM is easy to use, safe, and seamless.” He explains the step-by-step instructions for utilizing the Hitachi Money Spot UPI ATM to make cash withdrawals.
- Decide how much money you want to take out of the ATM first.
- Following that, the chosen amount will be represented by a QR code on the screen.
- You must use any UPI software on your phone to scan the QR code on the card.
- To complete the transaction, you must next input your UPI PIN on your mobile device.
- The ATM will release the money once it has been approved.
Who can use UPI-ATMs?
UPI-ATMs are accessible to anyone with a registered UPI application. To complete the transactions, “the customer should have a UPI app on either their Android or iOS phones,” advises Vikamsey.
Please be aware that the Hitachi Money Spot UPI ATM is a White Label ATM run by non-banking organizations.”It can also be utilized by issuer banks that have signed up for this feature as well as Payment Service Providers (PSPs) that have completed the certification and are enabled for Interoperable Cardless Cash Withdrawal (ICCW) capabilities. In the future, we anticipate seeing more banks and UPI PSPs join,” he says.
At the Global Fintech Fest in 2023, customers can use it there. However, the deployment will begin soon, according to Vikamsey.
Additionally, the UPI-ATM will eliminate the chance of card’skimming’. According to Hitachi Payment Services, it would promote financial inclusion by making banking services easily accessible in places with sparse traditional banking infrastructure and card usage.
Upi Atm vs Traditional Atm
Comparison of UPI ATMs and traditional ATMs:
| Feature | UPI ATM | Traditional ATM |
|---|---|---|
| Security | More secure, as there is no risk of your ATM card being lost or stolen. | Less secure, as your ATM card can be lost or stolen. |
| Convenience | More convenient, as you can withdraw cash from any UPI ATM, regardless of the bank that issued your UPI ID. | Less convenient, as you can only withdraw cash from ATMs that are linked to your bank account. |
| Accessibility | More accessible, as they can be found in more places, including remote areas. | Less accessible, as they are typically found in urban areas. |
| Cost | Typically free, or lower fees than traditional ATMs. | May charge a fee for each withdrawal. |
| Ease of use | Easy to use, as you can use your UPI ID and PIN to generate a QR code, which you can then scan at the ATM to withdraw cash. | May be more difficult to use, as you may need to enter your ATM card number and PIN. |
Overall, UPI ATMs offer a number of advantages over traditional ATMs, including being more secure, convenient, and accessible. However, they may not be available in all areas, and they may not offer all of the same features as traditional ATMs.
Some additional things to consider when choosing between a UPI ATM and a traditional ATM:
- Your location: If you live in a remote area, a UPI ATM may be your only option for withdrawing cash.
- Your bank: Not all banks offer UPI ATM withdrawals. Check with your bank to see if they support this feature.
- Your needs: If you need to withdraw a large amount of cash, a traditional ATM may be a better option.
How UPI-ATM will be different from cardless cash withdrawal?
Several banks currently provide the option of cardless cash withdrawals. You may have the same ease of cardless cash withdrawal with UPI-ATM. Vikamsey continues, “Cardless cash withdrawals are based on mobile and OTP while the UPI ATM is based in QR based UPI cash withdrawals.” Vikamsey then clarifies how UPI-ATM will vary from cardless cash withdrawals.
“The launch of the UPI-ATM will mark a significant milestone in banking services by seamlessly integrating the convenience and security of UPI into traditional ATMs. This innovative concept is designed to provide quick access to cash even in the remote areas of India without the need for a physical card,” says National Payments Corporation of India (NPCI).
Advantages of UPI ATM
there are a number of advantages to using a UPI ATM. These include:
- Security: UPI ATMs are more secure than traditional ATMs, as there is no risk of your ATM card being lost or stolen.
- Convenience: UPI ATMs are more convenient than traditional ATMs, as you can withdraw cash from any UPI ATM, regardless of the bank that issued your UPI ID.
- Accessibility: UPI ATMs are more accessible than traditional ATMs, as they can be found in more places, including remote areas.
- Cost-effectiveness: UPI ATM withdrawals are often cheaper than traditional ATM withdrawals.
Disadvantages of UPI ATM
While UPI ATMs offer a number of advantages, there are also a few disadvantages to consider. These include:
- The withdrawal limit is lower than for traditional ATM withdrawals.
- Not all banks support UPI ATM withdrawals.
- You may need to download a UPI app in order to use a UPI ATM.
How to find a UPI ATM near you
You can find a UPI ATM near you by using a search engine or by checking the website of your bank. Many banks now have a list of UPI ATMs on their website.
UPI ATMs are a convenient and secure way to withdraw cash. They are becoming increasingly popular in India, and they are likely to become even more popular in the future. If you are looking for a safe and convenient way to withdraw cash, then a UPI ATM is a good option for you.
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