RBI Launches Cardless Withdrawals at ATMs via UPI

RBI on 8th April 2022 announced that people can now withdraw money from ATMs without debit and credit cards. This will be done via UPI (unified payments interface) authentication. HDFC, SBI, and ICICI banks already have this process enabled.

RBI said, “To encourage cardless cash withdrawal facility across all banks and ATM networks, it is proposed to enable customer authorization through the use of UPI. Settlement of such transactions would happen through the ATM networks. Separate instructions would be issued to NPCI (National Payments Corporation of India), ATM networks and banks shortly.”

It added “In addition to enhancing ease of transactions, the absence of the need for physical cards for such transactions would help prevent frauds such as card skimming and card cloning, among others.”

Here is the process of ATM Cash withdrawal using UPI -

• Select ‘UPI-based cash withdrawal’ option.

• Enter the amount to be withdrawn.

• QR Code will be generated.

• Scan the QR Code via any UPI-enabled app (BHIM/Google Pay/Paytm/PhonePe/Amazon Pay/etc.) on your Mobile.

• Enter the UPI Pin on your Mobile.

• Collect Cash from the ATM.

• Click on the ‘Cancel’ button on the ATM.

• Done!

You can check the cash withdrawal limits in our What are the various UPI Transaction Limits by Banks, NPCI and PSP Apps in 2022 article.

You can use UPI for cash withdrawal from any bank’s ATM, 3rd party ATMs, and white label ATMs. What do you think about this move from the RBI? Do share your views below. Before going, here are the latest UPI offers and Bank offers for you!