Cash Withdrawal Using UPI from ATM

Posted on Thursday, January 23rd, 2025 | By IndusInd Bank

It is no secret that the Unified Payments Interface (UPI) has made it easier than ever to make payments. All you need to do is tap a few times on your screen and the payment is done. But did you know that now, UPI also enables you to make cardless cash withdrawals at the ATM? 

Launched in September 2023, the UPI ATM cash withdrawal feature aims to increase the convenience offered by UPI. It will also reduce the risks associated with carrying and using debit or credit cards. Let’s explore how this feature works, its benefits, and more.  

What is ATM Cash Withdrawal Using UPI? 

• It is a process that allows users to withdraw cash from ATMs without the need for a debit or credit card. Instead of swiping a card, users can authenticate the withdrawal through a UPI app on their smartphone.  

• The UPI cash withdrawal system at ATMs uses the Interoperable Cardless Cash Withdrawal (ICCW) method. So, there is no need to enter your card number or details, which can reduce risks like card skimming or cloning. 

• This feature was launched in 2023, and multiple banks in India, including IndusInd Bank, now offer this service.  

To make the most of UPI cash withdrawals, consider opening an online Savings Account with IndusInd Bank. Along with UPI ATM cash withdrawal, you also enjoy 24/7 digital banking, rewards and cashback on your debit card, complimentary movie tickets, and more. Open an account today!  

How to Withdraw Cash at ATM Using UPI? 

The process of ATM cash withdrawal using UPI is a simple one. Here are the steps to follow: 

1. Visit any ATM that supports UPI withdrawals. 

2. Choose the ‘UPI Cash Withdrawal’ option on the ATM screen. 

3. Type in the amount of cash you wish to withdraw. 

4. Use your UPI-enabled app to scan the single-use dynamic QR code that will appear on the ATM screen. 

5. Enter your UPI PIN (after scanning) on the app to authenticate the transaction. 

6. Receive cash dispensed by the ATM after the withdrawal is authenticated. 

Thus, the process of ATM cash withdrawal using UPI removes the need for physical cards entirely.   

Benefits of Withdrawing Cash at ATM Using UPI

By opting for ATM UPI cash withdrawal, you can enjoy the following benefits: 

1. Fewer Risks 

In the Financial Year 2023-24, India experienced a loss of around ₹177 crores on account of credit, debit, and internet banking frauds. In such an environment, it is crucial to practice safety while transacting at the ATM. 

With the UPI ATM cash withdrawal process, there are fewer risks of card-related frauds like skimming or cloning. The single-use dynamic QR code ensures a secure transaction process. 

2. Convenience 

This process allows you to withdraw cash from your account even if you do not have your card with you. As long as you have a smartphone with UPI, you can withdraw cash from the ATM. 

3. Access Cash from Multiple Accounts 

With ATM UPI cash withdrawals, users can link multiple accounts in their UPI app and choose which one to use for withdrawals. This allows for greater flexibility compared to card-based ATM withdrawals. 

4. Widely Accessible 

This service is available across various banks, including IndusInd Bank. This makes it a widely accessible feature. 

FAQs on ATM Cash Withdrawal Using UPI 

1. Are there fees or charges for using UPI to withdraw cash from an ATM? 

No, by making a UPI cash withdrawal at the ATM, you will not incur any specific charges. However, standard ATM transaction fees may apply.  

2. Is there a limit to how much I can withdraw using UPI at an ATM?

Yes, the maximum withdrawal limit is ₹10,000 per transaction, which is the general UPI limit. The amount is also subject to the UPI limit set by the bank. 

3. Do all banks offer ATM UPI cash withdrawal services? 

Most major banks, including IndusInd Bank, have adopted this feature. More banks are expected to join soon. 

Also Read: Understanding All About UPI Transaction Charges 

Conclusion

Withdrawing cash from an ATM using your UPI app is an easy and secure way to access your money without needing a physical card. Thanks to QR codes and cardless technology, you can now manage your finances safely without the risks associated with card theft or fraud.  

Irrespective, you must ensure you are practising general ATM safety measures even with ATM UPI cash withdrawal processes.  

Just like UPI makes payments and withdrawals convenient, a zero balance account makes banking easier by removing the need for a minimum balance. By opening a Zero Balance Account online with IndusInd Bank, you can enjoy freedom from minimum balance requirements while making the most of modern banking. So, open a Savings Account today!  

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.