Removal of cash via an ATM through a detection card can be considered a shocking idea, yet it can be done in India with the help of a new type of banking technology.
A number of banks have begun to provide services of cardless cash withdrawal through UPI (Unified Payments Interface).
This implies that you are now able to withdraw money even in the event that you have forgotten your wallet and all you require is your smartphone.
We market to know how this new feature will work, what should be used, and what the restrictions are.
What do you mean by “cardless cash withdrawal”?
Cardless cash withdrawal enables you to draw cash in an ATM machine with a mobile phone, and you will not be required to swipe a debit card. Instead ,the transaction is achieved via a UPI application, including:
- Google Pay
- PhonePe
- Paytm
- BHIM UPI
This service is not harmful since it does not require placing a physical card that would also minimize the possibility of card cloning or skimming. RBI has urged all the banks to enable cash withdrawal of funds using UPI based transactions over ATMs.
The Secret of Withdrawing Cash Without a Card
This is not complicated, and it can be carried out within a few steps. Here’s how it works:
- Go to an ATM that accepts UPI cash withdrawal (you will normally see an option of UPI Cash Withdrawal on the screen).
- The ATM screen has an option of UPI cash withdrawal.
- A QR code will be presented on the screen.
- Open your favorite UPI on your smartphone.
- Models are to scan the QR code displayed on the ATM screen.
- Incidentally, key in the amount you want to withdraw and the UPI PIN.
- The ATM will then instantly dispense your money after making sure it is true.
Goodbye, no card, no PIN punching on the ATM touchpad. Then all is done safely in your UPI.
What You’ll Need
Previously, before cardless withdrawal is used, ensure that you have:
- A UPI ID is associated with a bank account.
- A smartphone that has an open UPI application such as Google Pay, PhonePe, or Paytm.
- Internet connectivity to finalize the deal.
This feature should not be offered by all ATMs yet, but it has already been initiated by such mega banks as HDFC Bank, SBI, ICICI Bank, and Axis Bank.
Withdrawal Limits
Some restrictions exist on the side of the banks and the National Payments Corporation of India (NPCI) due to security reasons:
- UPI provides you with the opportunity to withdraw up to Rs10,000 per transaction.
- This daily limit is based on your bank, and it can be Rs 10000-Rs 25000.
- There are also a few UPI cash withdrawals allowed per day.
These restrictions provide security to the users against abuse and secure online transactions.
UPI Related Advantages of Cash Withdrawals
Cardless withdrawals are associated with several benefits:
- There is no threat of card theft or card skimming: This is because no physical card exists, so your card data remains intact.
- Quicker payments: It is quite fast and does not involve the insertion or removal of a card.
- Easy when there is an emergency: You leave your wallet behind and find it easy to take money out.
- Contactless and hygienic: Minimizes physical contact with ATM surfaces, particularly convenient during visits to places of high population.
What to Keep in Mind
As much as the feature is convenient, one should take care not to be too careless:
- Enter personal phone and UPI ID.
- Do not withdraw money from suspicious or lonely ATMs.
- Always check the quantity and book before making sure that the deal has been confirmed.
To use this service, Banks suggests that you upgrade your UPI app on a regular basis so that using it becomes fruitful and secure.
Another massive stride the country is making towards digital and secure banking is the cardless cash withdrawal via UPI. It is flexible, safe, and convenient in a single package.
The following time you are in a hurry or do not have your wallet around, you need not worry. And all you have to do is drag out your phone, open up your UPI application, and pay money, without the use of a card.
