Anand Mahindra shared a video of a unique ATM that works via UPI apps.
This ATM was unveiled at the recently held Global Fintech Fest in Mumbai.
Swift progress in digitisation
The Chairman of Mahindra Group wrote, “His UPI ATM was unveiled at the Global Fintech Fest 2023 in Mumbai on September 5. The speed at which India is digitising financial services & making them consumer-centric as opposed to corporate-centric (Alarm bell for credit card companies?) is simply dazzling. (I just have to make SURE I don’t misplace my cellphone!”.
Praveena Rai, chief operating officer of NPCI, said UPI-ATMs will help re-imagine ATMs and the ATM experience, cost, location, and reach.
White Label ATM
Hitachi Payment Services introduced the country’s first-ever UPI-ATM as a White Label ATM (WLA) in association with the National Payments Corporation of India (NPCI).
This UPI ATM was apparently unveiled at the Global Fintech Fest 2023 in Mumbai on September 5. The speed at which India is digitising financial services & making them consumer-centric as opposed to corporate-centric (Alarm bell for credit card companies?) is simply dazzling.… pic.twitter.com/krBXhbc9Qh
— anand mahindra (@anandmahindra) September 7, 2023
The UPI-ATM is a white label ATM which refers to those that are owned and operated by non-bank entities.
“Customers can use it there at the Global Fintech Fest 2023. However, the deployment will start in a few months,” Sumil Vikamsey, Managing Director & CEO – Cash Business, Hitachi Payment Services said.
Basic features
The withdrawal limit is Rs 10,000 per transaction.
This includes the existing daily UPI limit and as per the limit set by the issuer bank for UPI-ATM transactions.
There is no need to carry a card for ATM cash withdrawals and one can take out cash from multiple accounts using the UPI app.
Advantages
These ATMs are more secure.
Since there are no cards involved, there is no risk of ‘skimming’ of cards by fraudsters.
It will drive financial inclusion by facilitating easy access to banking services in areas where traditional banking infrastructure and card penetration is limited, said Hitachi Payment Services.
How the UPI-ATM is different from cardless cash withdrawals
The UPI-ATM operates through QR-based UPI cash withdrawals.
A user can withdraw money only if he has a UPI app installed on either their Android or iOS smartphone to perform successful transactions.
Whereas card-less cash withdrawals rely on mobile numbers and OTPs.
How to withdraw money from a UPI-ATM
- Step 1: Select the ‘UPI cash withdrawal’ option on the ATM and then select the desired amount.
- Step 2: A single-use dynamic QR code will be displayed on the screen.
- Step 3: Scan the QR code using the UPI app (Google Pay, PhonePe, PayTM, etc.)
- Step 4: Enter your UPI PIN for the app.
- Step 5: Bank will send a message regarding the transaction.
- Step 6: Cash will be dispensed.
