UPI is now enabling a new way to withdraw cash, for all bank customers. Very soon, the bank users will be able to withdraw cash, without using any ATM, from any ATM machine.
One of the banks have already started this process, but for their own customers.
Now, as per some reports coming in, this facility will begin for all.
Does this mean that ATMs will no be required in the near future?
Use UPI To Withdraw Cash From ATMs
Bank of India has started a new facility, wherein bank customers can easily withdraw cash from the ATMs, without using their ATM or debit card.
Using the advanced features of UPI, the cash can be withdrawn from the ATM, easily.
However, this feature is only available for Bank of India customers, and not for all.
But now, with UPI 2.0 version being currently live, NPCI is holding talks with all banks to find out a way, wherein any bank user can visit any bank’s ATM machine, and withdraw cash using UPI.
An unnamed banker confirmed this, as he said, “NPCI is currently reviewing the system and could open up interoperability very soon, thereby opening new use case for UPI,”
How Does This Work?
In the current scenario, only Bank of India provides a ATM-less cash withdrawal mechanism, using UPI.
Bank of India has collaborated with AGS Transact Technologies for implementing this new system. The bank customer enters the ATM kiosk, and then initiate a code-based transaction from the options available in the machine.
Once he choses that option, a dynamic QR code is flashed into the machine, which the user can scan using the UPI app. And then, the cash is withdrawn.
Bank of India has already implemented this UPI based cash withdrawal in few ATMs, and soon, this will be expanded.
No More ATM Fraud With UPI Based Cash Withdrawal?
Since the ATM card has no physical contact with the ATM machine, there is no chance of ATM skimming or any fraud.
Ravi Goyal, managing director, AGS Transact Technologies said, “We have worked with Bank of India to enable these services in their ATMs and they are rolling it out across all their ATMs within the next three to six months,”
Considering that ATM skimming is on the rise, and hundreds of bank users have lost millions of money in the last few months, this ATM-less cash withdrawal seems the perfect solution.
We will keep you updated, as more details come in.
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