A Look at the Game-Changing UPI-ATM Unveiled at Global Fintech Fest 2023
In a groundbreaking move that’s set to redefine the way we withdraw cash, a unique ATM working through UPI apps has been unveiled. Anand Mahindra, Chairman of the Mahindra Group, recently shared a video showcasing this innovative ATM, which promises to make cash transactions more accessible and secure. This article explores the details of this game-changing UPI-ATM and its potential impact on the banking landscape.
Swift Progress in Digitization
Anand Mahindra revealed that this UPI ATM made its debut at the Global Fintech Fest 2023 in Mumbai on September 5. He highlighted the remarkable speed at which India is digitizing financial services, transforming them into consumer-centric experiences rather than corporate-centric ones. This development raises questions about the future of credit card companies as digital banking gains ground.
White Label ATM: A New Frontier
The UPI-ATM, introduced by Hitachi Payment Services, is a white label ATM (WLA) in collaboration with the National Payments Corporation of India (NPCI). White Label ATMs are owned and operated by non-bank entities, offering a fresh approach to traditional banking services.
While the UPI-ATM was unveiled at the Global Fintech Fest 2023, its full-scale deployment is expected to begin in the coming months.
Basic Features and Advantages
The UPI-ATM boasts several advantages. It allows users to withdraw up to Rs 10,000 per transaction, adhering to the existing daily UPI limit and the limit set by the issuer bank for UPI-ATM transactions. Importantly, there’s no need for physical debit cards. Cash can be withdrawn from multiple accounts using the UPI app.
One of the primary advantages is enhanced security. Since there are no physical cards involved, the risk of card skimming by fraudsters is eliminated. Additionally, UPI-ATMs hold the potential to drive financial inclusion by offering easy access to banking services in areas with limited traditional banking infrastructure and card penetration.
Different from Cardless Cash Withdrawals
It’s essential to differentiate UPI-ATMs from cardless cash withdrawals. UPI-ATMs rely on QR-based UPI cash withdrawals and require users to have a UPI app installed on their Android or iOS smartphones to complete transactions. In contrast, cardless cash withdrawals typically depend on mobile numbers and OTPs for authentication.
How to Use a UPI-ATM
- Step 1: Select the ‘UPI cash withdrawal’ option on the ATM and choose the desired amount.
- Step 2: A single-use dynamic QR code will appear on the screen.
- Step 3: Scan the QR code using your UPI app (such as Google Pay, PhonePe, or PayTM).
- Step 4: Enter your UPI PIN for the app.
- Step 5: The bank will send a transaction confirmation message.
- Step 6: Cash will be dispensed.
The introduction of UPI-ATMs represents a significant leap in the evolution of banking services in India. With enhanced security, ease of use, and broader accessibility, these ATMs have the potential to revolutionize the way we handle cash transactions. As the deployment of UPI-ATMs gathers pace, the banking industry is set for a transformative journey.
