India's first UPI-ATM launched which permits "QR-based cashless withdrawals".

In order to facilitate "seamless cash withdrawals" and do away with the need to carry physical ATM cards, Hitachi Payment Services and the National Payments Corporation of India (NPCI) collaborated to introduce India's first UPI-ATM on Tuesday as a White Label ATM (WLA).

QR-based cashless withdrawals

It provides a service that enables "QR-based cashless withdrawals" for customers of specific banks.

The National Payments Corporation of India (NPCI), according to a Live Mint report, expressed joy at enabling clients with this cutting-edge and user-friendly innovation for ATM transactions.By effortlessly integrating the ease of use and security of UPI into conventional ATMs, the introduction of the "UPI ATM" will signal a key turning point in financial services.

With the help of this ground-breaking idea, everybody in India, regardless of location, will have rapid access to cash eliminating the need for a physical card.

Customers of participating banks can use the UPI-ATM service, also known as Interoperable Cardless Cash Withdrawal (ICCW), to conveniently withdraw cash from any ATM that supports UPI-ATM capability without having to use a real card.

How to withdraw cash with this new feature?

A customer will be prompted to enter the desired withdrawal amount when they choose the 'UPI cash withdrawal' option at the ATM. A distinctive and secure dynamic QR code will show up on the ATM screen after the amount has been input. The customer only needs to scan this QR code using any UPI app and approve the transaction with their UPI PIN on their mobile device to complete the transaction and withdraw cash from the ATM.

While UPI-ATM uses QR-based UPI cash withdrawals to operate, current card-less cash withdrawals rely on cellphone numbers and OTPs. People who use UPI and have an Android or iOS smartphone with an installed UPI app can access UPI-ATM. Users must have a UPI app downloaded on their Android or iOS mobile devices in order to perform transactions.

Currently , Up to Rs.10,000 can be spent per transaction, which is in line with the UPI daily limitations and the issuer bank's UPI-ATM transaction limits.

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