- By Vaamanaa Sethi
- Thu, 07 Sep 2023 05:51 PM (IST)
- Source:JND
Hitachi Payment Services, a subsidiary of Japan-based Hitachi, has launched India’s first UPI-ATM, in association with the National Payments Corporation of India.
Named Hitachi Money Spot UPI ATM, the new innovation will enhance security by eliminating the risk of card skimming by fraudsters.
Also read: Now You Can Withdraw Money From ATM Using UPI; Check Process, How Its Safer Than Debit, Credit Cards
What is UPI-ATM?
UPI-ATM is a White Label ATM (WLA) that facilitates people to withdraw money without using debit or credit cards. It enables customers from participating banks to access cash without requiring an ATM or debit card. These ATMs are owned and operated by entities other than traditional banks.
Features of UPI-ATM
The withdrawal limit for each transaction is set at Rs 10,000. This limit is incorporated within the overall daily UPI transaction limit and is subject to the restrictions established by the issuing bank for UPI-ATM transactions.
You do not need to carry a physical card for ATM cash withdrawals; instead, you can conveniently withdraw cash from various accounts using the UPI mobile application.
How does UPI-ATM work?
The UPI-ATM is simple to use, secure, and effortless," says Sumil Vikamsey, Managing Director & CEO - Cash Business, Hitachi Payment Services. Here's a step-by-step guide on how you can withdraw money from an ATM using Hitachi Money Spot UPI ATM.
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Begin by choosing the desired withdrawal amount at the ATM.
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Subsequently, a QR code corresponding to the selected amount will appear on the screen.
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Employ any UPI app on your mobile device to scan the displayed QR code.
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Following the scan, you will be prompted to input your UPI PIN to validate the transaction.
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After successful authorization, the ATM will dispense the requested cash.
How is it safer than using credit, debit cards?
Cardless cash withdrawals are safer because it eliminates the risk of card skimming as it eliminates the physical usage of debit or credit cards at an ATM. Card skimming is a type of fraud in which criminals install certain type of devices at the ATM to record card information, including credit card number, PIN etc, when customers insert their cards.
It will drive financial inclusion by facilitating easy access to banking services in areas where traditional banking infrastructure and card penetration is limited, believes Hitachi Payment Services.
How is UPI-ATM different from cardless cash withdrawals?
Vikamsey said on how cardless cash withdrawal differs from UPI-ATM, “Cardless cash withdrawals are based on mobile and OTP while the UPI ATM is based in QR based UPI cash withdrawals.”
"The launch of the UPI-ATM will mark a significant milestone in banking services by seamlessly integrating the convenience and security of UPI into traditional ATMs. This innovative concept is designed to provide quick access to cash even in the remote areas of India without the need for a physical card," said National Payments Corporation of India.
Anyone with a registered UPI application can use UPI-ATMs. "The customer should have a UPI app either on their Android or iOS phones to make the transactions," Vikamsey said.
He further added, “It can also be used by Payment Service Providers (PSPs) who have done the certification and are enabled for Interoperable Cardless Cash Withdrawal (ICCW) functionality as well as issuer banks who are onboarded for this functionality. Going forward we expect more banks and UPI PSPs to be onboarded in due course.”
