As India's trajectory towards Digital India is unparalleled and setting an example globally, here's another innovation that further boosts that mission. Developed by NPCI and powered by NCR Corporation, now cash withdrawals can be made using UPI without needing a debit card at all. This innovation will lead to seamless transactions and bolsters ease of banking through a smartphone.

In a video demonstration by Ravisutanjani on X (formerly Twitter), the FinTech influencer can be seen showing how cash withdrawals can be made from an ATM using UPI. The video has been taken of a machine specially designed to dispense cash via UPI, which has been demonstrated at Global FinTech Fest in Mumbai. This technology is not publicly deployed yet, but it is being rolled out in phases.

The new UPI ATM is curently supported by BHIM UPI app, but it is only a matter of time before more apps like Google Pay, PhonePe, Paytm get onboarded. It's worth noting that the UPI ATM will act just a regular ATM, transacting with which will be counted as TM Withdrawal and charges may get applied beyond allowed free usage limit, Ravisutanjani notes.


How to withdraw cash using UPI?

As shown in the viral video, which has since been viewed over 750,000 times, withdrawing cash using UPI ATM can be done in three simple steps.

Step 1: Click on "UPI Cardless Cash" displayed on the machine.

Step 2: Select the denomination from the options given such as 100, 500, 1000, 2000 or 5000.

Step 3: Once the amount is selected, a QR code will be displayed on the screen, so scan it using BHIM UPI/

Step 4: Confirm the prompt on BHIM UPI to "Withdraw the cash".

Step 5: Enter your PIN and a confirmation message will be displayed on the phone.

By following these simple steps, the UPI ATM will dispense the amount in cash. Users can also select desired amount instead of the preset denominations by selecting "Other Amount" in the second step.

UPI transactions in 2022

While on the topic of UPI, it's worth noting that the UPI transactions were Rs 5.86 lakh crore in 2018, which went up by 1,320 per cent to Rs 83.2 lakh crore in 2022. UPI transactions have been on the rise over the past few years owing to the arrival of several such interfaces, and people increasingly using them to make all sorts of payments, with small shopkeepers to big institutions preferring such modes of payments, a finance ministry official said. Also the government has been aggressively promoting these modes of payments, especially the BHIM app, which has gradually led to their increase, both in terms of volume and value, the official said. With this new technology, use-case of UPI will only spike.