Probably you would have withdrawn cash using a debit card or a credit card in an ATM. What if you are given an option to easily withdraw cash from an ATM without inserting a credit or a debit card. Well, It may sound counterintuitive, but currently, you can easily withdraw from an ATM using the UPI facility. The Reserve Bank of India has proposed to make a cardless withdrawal at all ATM networks using a  Unified Payment Interface.

The cardless cash withdrawal facility is available in a few banks through its ATM services. Leading banks like the State Bank of India(SBI), HDFC Bank, and Punjab National Bank (PUB) offer a cardless card withdrawal facility. The advantage of withdrawing money in an ATM without credit & debit cards is that it prevents situations like lost cards, rejected transactions due to wrong PINs, and card theft at ATMs. 

The following are the prerequisites for withdrawing Money via UPI. 

  • To withdraw cash from an ATM, you must have a bank account and install any UPI-based payment apps such as GPay, PhonePe, BHIM, etc. 
  • You should have an active internet connection.

What Are The Steps To Withdraw Cash Via UPI?

Follow the below steps to withdraw cash using a UPI:

  1. First, go to any ATM & select the “Withdraw Cash” option
  2. From the “Withdraw Cash” option, you must select the UPI option on the ATM screen. The QR code will be displayed on the ATM screen.
  3. Now, you must open any UPI payment app on your phone and turn on the QR scanner code. 
  4. Start to Scan the QR code shown on the ATM screen. 
  5. Post scanning, you must select the amount you want to withdraw. 
  6. Next, press the proceed button and type your UPI PIN to withdraw the money.

Furthermore, RBI Governor, Shaktikanta Das, elucidated that the issuance of debit cards would not stop due to the introduction of cardless cash withdrawal facilities in ATMs as they have other advantages beyond cash withdrawals. You can use debit cards for overseas transactions and ATM cash withdrawals when your mobile phone is not working or while traveling in poor internet connectivity areas. The cardless cash withdrawal facility will curb ATM fraud. The UPI culture not only helps to conduct seamless online payments but also enables a standardized flow for secure authentication to a bank account.

What Are The Features Of Cardless Cash Withdrawal?

The following are the features of Using Cardless cash withdrawals at ATM branches. 

  1. Under the card-less cash withdrawal facility, you don't need to carry debit or credit cards while withdrawing cash from ATMs.
  2. The cardless withdrawal is available 24X7 service anywhere in India.
  3. It is a safe and secure method to withdraw cash from ATMs as it uses the mobile PIN to generate cash.
  4. Only some banks offer this facility.
  5. There is a daily transaction limit for getting cash without a card. Per day you can withdraw within Rs. 5,000. Some banks have set a limit of  Rs. 10,000. 

What Are The Pros & Cons Of Using UPI?

Pros Of UPI:

  1. You can make a safe payment using a UPI app. The money transfer can be done only by entering a PIN provided by the UPI app. 
  2. With the UPI, you can make free payments without any charges.
  3. It provides access to all your bank accounts via a single mobile application.
  4. UPI facilitates sending payment or receiving money at one time. You can either deposit money into your account or send money to another account in the blink of an eye.
  5. UPI is available 24*7, so you can proceed with payment at any time and any place, even on public holidays.
  6. You don't need to fill in various details like ATM card number, IFSC code, and account number each time while making a transaction in UPI.
  7. Receive cash back, rewards points, and discounts from transactions made using UPI apps like Google Pay, PhonePe, Paytm, etc. 

Cons of UPI:

  1. The UPI is used to make only a small amount of fund transfers, you cannot transfer a high amount.
  2. Another drawback of UPI is that it is hard to convince a person who is following traditional banking to suddenly switch to online banking using a smartphone as they may be concerned about online fraud.
  3. The transaction limit is limited to Rs 10,000. 
  4. You should transfer money from the unified payment interface pin labeled as a UPI pin. As the PIN is a small digit number between 4 to 6 digits, it is quite unsafe to make transactions. It is necessary to use it carefully without sharing your UPI credentials with third parties.
  5. UPI services will not work properly in case of poor internetwork connection.
  6. Also, UPI payments may get delayed or consumers a lot of time if the bank server is down.
  7. UPI is not designed to make international payments.

FAQs of Withdraw cash from ATM without a debit, or credit card; Here is how to use UPI for the same

1:Will  Bhim UPI give cashback?

The incentives are offered to the new users who successfully download the BHIM app and link it with their bank accounts. And the customer should complete ten successful unique financial transactions via the BHIM app, each transaction should be above Rs 50. An amount of Rs 150 is paid to the user as a cashback. 

2:What kind of cashback will PhonePe offer?

PhonePe offers cashback, rewards, scratch cards, offers, discounts & coupons on every transaction made via PhonePe. 

3:Can I use my Google pay for the cardless withdrawal from ATMs?

Both Google Pay & Apple pay work the same. You can withdraw cash at any ATM that has a contactless sign. Unlock your Google Pay Wallet and select the card you wish to use.

4:Is UPI developed in India?

The Unified Payments Interface named UPI was developed by The National Payments Corporation of India (NPCI) and controlled by the Reserve Bank of India (RBI).