Unified Payment Interface (UPI), used for instant money transfer through mobile devices, has become the fastest growing payment mode in the country.
On Tuesday, a revolutionary UPI ATM that facilitates cardless cash withdrawals was showcased for the first time at the ongoing Global Fintech Fest in Mumbai. Dubbed ‘India’s first UPI ATM’, the new feature eliminates the need to carry an ATM card and is being hailed as a “game changer” by internet users.
On Thursday, Union Minister Piyush Goyal posted a video on X, showing fintech influencer Ravisutanjani how to withdraw cash from an ATM using UPI.
In the video, Mr. Ravisutanjani, who originally posted the video, first clicks on the UPI Cardless Cash option displayed on the screen and is asked to enter the desired withdrawal amount. Once the amount is entered, a QR code appears on the ATM screen. He then scans the QR code using the BHIM app and enters his UPI PIN. After some time he collects the cash.
This unique ATM has been developed by National Payments Corporation of India and operated by NCR Corporation.
Notably, the UPI ATM will function as a regular ATM, and charges may be applied beyond the permitted free usage limit. The new UPI ATM is currently supported on the BHIM UPI app, but it will soon go live on other apps like Google Pay, PhonePe and Paytm.
The technology has not yet been deployed publicly but is being implemented in phases.
Commenting on the innovation, one user wrote, “A completely new, but much needed innovation! This will be especially beneficial for those who know how to use UPI, but not debit cards (there are a lot of people, especially in rural areas). Withdrawal of cash from UPI ATM will become very easy. “Really amazed at how far we have come in financial technologies.”
“Brilliant innovation, no need to carry cards,” another commented. I’m sure they’ll include existing ATM machines as well.” A third called it a “game-changer.”
Recently, UPI achieved a remarkable feat by crossing 10 billion transactions in a month. The total number of UPI transactions reached an all-time high of 10.58 billion in August. A top official of the National Payments Corporation of India said that the country has the capacity to conduct 100 billion Unified Payments Interface (UPI) transactions in a month.
