Soumya Prakash Pradhan

The United Payments Interface (UPI) has revolutionised the digital payment system in India since its introduction in 2016 and become a widely-popular mode of transaction.

UPI has simplified online payments and money transfers by merging several bank accounts into a single mobile application.
Recently, the National Payments Corporation of India (NPCI), which administers UPI, has introduced a new feature that enables users to withdraw money from any bank ATM using UPI applications like Google Pay, Phone Pay, and Paytm.

This new feature is called Interoperable Cardless Cash Withdrawal (ICCW) and is aimed at reducing card-related fraud.

Using UPI for Cash Withdrawals:

Customers no longer have to worry about carrying their cards or remembering their ATM PINs while withdrawing money from an ATM.
With ICCW, customers can now withdraw cash from any bank's ATM using UPI applications. Currently, only a few banks offer the option to withdraw cash without a card, but according to the new rules mandated by the Reserve Bank of India, all banks will be required to provide this option to their customers.

How to withdraw cash from ATM using UPI:

To withdraw cash from an ATM using UPI, customers need to follow a few simple steps.

1.    Go to any bank’s ATM and select “Withdraw Cash” option from the menu.
2.    Choose ‘UPI’ from the list of options.
3.    A QR code will be displayed on the ATM's screen.
4.    Launch the UPI-based application on your phone, such as Google Pay or PhonePe and UPI-supported apps.
5.    Use your UPI-based mobile app’s QR code scanner feature to scan the QR code on the ATM's screen.
6.    Enter the amount you want to withdraw.
7.    Type in your UPI PIN.
8.    Select “Hit Proceed” from the options displayed.
9.    The ATM will give out the required cash.

With the introduction of ICCW, UPI users can now withdraw cash from any bank's ATM without the need for a physical card or remembering their ATM PIN.