UPI ATM Cash Withdrawal: Limit, Benefits, and Step-by-Step Guide

UPI (Unified Payment Interface) has become one of the easiest and fastest ways to make payments and transfer money on the go. But did you know it can do more than just help you pay your bills? With UPI, you can withdraw cash from ATMs without needing your debit or credit card. All you need is your smartphone and a UPI-enabled app that supports ATM transactions. No more worrying about forgetting your wallet. Just scan, enter your UPI PIN, and get your cash instantly!

What is UPI ATM Cash Withdrawal?

UPI ATM cash withdrawal is a cardless cash withdrawal service called Interoperable Cardless Cash Withdrawal (ICCW), allowing customers to withdraw cash from ATMs without using a physical debit or credit card. Instead, the process is entirely UPI-based, enabling customers of participating banks to withdraw money using their smartphones.

Cardless Cash Withdrawal vs UPI ATM Cash Withdrawal

The Reserve Bank of India (RBI) has approved two types of Interoperable Cardless Cash Withdrawal (ICCW) transactions: cardless cash withdrawals and UPI ATM withdrawals.

• Cardless Cash Withdrawals: You initiate the process through NetBanking, and it often involves adding beneficiaries, mobile numbers, and OTP verifications before withdrawing money.
• UPI ATM Withdrawals: With UPI, you can instantly withdraw cash using any UPI-enabled app. Simply scan the ATM’s QR code, enter your UPI PIN, and withdraw your cash. No additional steps or setup are required.

How to Withdraw Cash from an ATM Using UPI

Follow these steps to withdraw cash from a UPI-enabled ATM:

1. Visit your nearest UPI ATM.
2. Select the ‘UPI ATM cash withdrawal’ option.
3. Enter the amount you wish to withdraw.
4. A QR code will appear on the screen.
5. Open your UPI app and scan the QR code.
6. Enter your UPI PIN to confirm the transaction.
7. Collect your cash.

It’s that simple!

Features of UPI ATM Cash Withdrawal

• Interoperable: The UPI-ATM service works across different banks, allowing you to withdraw cash from any UPI-enabled ATM, no matter which bank you use.
• Card-less Transactions: You no longer need to carry your debit or credit card to withdraw cash. Just use your smartphone and a UPI app- simple and quick!
• Transaction Limits: You can withdraw up to ₹10,000 per transaction. The withdrawal is part of your daily UPI limit, which varies depending on your bank.
• Convenience: No more worrying about forgetting your card. With UPI-ATM, you just need your UPI app to withdraw cash from the ATM, making life easier on the go.
• Withdraw from Multiple Accounts: Got multiple accounts? You can access all of them using your UPI app, giving you flexibility in managing your cash withdrawals from different accounts.

Benefits of UPI ATM Cash Withdrawal

1. Enhanced Security- UPI ATM cash withdrawals are incredibly secure. Since no physical card is used, the chances of falling victim to common ATM frauds like card skimming or cloning, are almost entirely eliminated. The use of dynamic QR codes adds an extra layer of protection, ensuring that each transaction is safe.
2. Ease of Use- Using UPI at ATMs makes cash withdrawals actually very easy. You don’t need to remember to carry a card, and there’s no hassle of inserting it into the machine. Just scan the QR code, and you're good to go.
3. Convenience- Forgetting your card or misplacing it isn’t an issue anymore. With UPI-enabled ATMs, you can withdraw money with just your phone. Perfect for those unexpected moments when you need cash.
4. Accessibility- UPI ATM cash withdrawal is available across a wide range of banks and ATMs. Even if you’ve recently opened a new account and haven’t received your card yet, you can still access your cash easily through the UPI app.
5. Cash Withdrawals from Multiple Accounts- Unlike traditional ATM withdrawals where you're stuck with one linked account, UPI lets you choose from multiple accounts within the app. This gives you flexibility and control over where your money comes from with each withdrawal.

This card-free, easy-to-use method is not only more secure but also a huge timesaver!

UPI ATM Cash Withdrawal Limits

Getting cash gets simpler and more flexible with this, but there are limits that keep things secure. Here’s a quick rundown:

• Per Transaction Limit: Most banks allow up to ₹10,000 per UPI ATM withdrawal, though some cap this at ₹5,000 per transaction. So, whether you’re grabbing cash for groceries or a quick purchase, there’s enough room for most daily needs.
• Daily Limit: This falls within the overall UPI transaction cap of ₹1 lakh per day, including all payments and withdrawals. So, even if you max out your ATM withdrawals, there’s still plenty left for UPI payments.
• Bank-Specific Limits: Different banks might tweak these amounts slightly, so it’s a good idea to check with your bank to know your exact withdrawal limits.

UPI ATM Cash Withdrawal Fees and Charges

Good news! The National Payments Corporation of India (NPCI) doesn’t charge you for using UPI at ATMs. Whether you’re withdrawing cash with a UPI app or your physical card, the fees stay the same.

Here’s the breakdown:

• No Extra UPI Charges: Using UPI at the ATM won’t cost you more than a regular card withdrawal.
• Standard ATM Fees Apply: Each account has a set number of free ATM transactions per month. Once you go beyond that limit, your bank's regular ATM fees kick in, whether you use UPI or your card.

So, if you’re used to paying fees for ATM transactions after your free withdrawals are used up, this will still apply, regardless of how you access your cash.

FAQs

1. What is cardless cash withdrawal?

   Cardless cash withdrawal is a method where you withdraw cash from an ATM without using a debit or credit card. With UPI ATM withdrawals, this process is even simpler—just scan a QR code and use your UPI PIN to collect your cash.

2. Can I withdraw cash using UPI?

   Yes, you can withdraw cash at a UPI-enabled ATM by scanning the QR code displayed on the machine and entering your UPI PIN.

3. What is the limit for UPI cash withdrawal from an ATM?

   The UPI ATM cash withdrawal limit is usually Rs. 10,000 per transaction, and it counts towards your daily UPI transaction limit.

4. Can I use the BHIM app for UPI ATM cash withdrawals?

   Yes, the BHIM app can be used to withdraw cash from UPI-enabled ATMs by scanning the QR code and entering your UPI PIN.