How to Withdraw Money from the ATM Using UPI

By | May 30, 2022

Here’s a simple step-by-step guide to withdraw money from the ATM using UPI.

ATM Didn’t Dispense Cash? Account Debited? Do This.

United Payments Interface, which comes under the purview of the National Payments Corporation of India (NPCI), has gained phenomenal traction in India post its launch in 2016.

UPI’s popularity as a payment method stems from the convenience it offers as the system combines multiple bank accounts into a single mobile application, making the transfer of money and online payments completely seamless.

In the latest feature addition, NPCI has unveiled withdrawal of cash from any bank ATM using just UPI. Using this new feature called Interoperable Cardless Cash Withdrawal (ICCW), customers will be saved the trouble of carrying their cards or remembering their ATM PINs.

The Reserve Bank of India has directed banks to provide this ICCW option at ATMs in a bid to prevent card-related frauds such as cloning, skimming and device tampering. At the moment, the cardless cash withdrawal facility is only available at a few banks at ATMs operated by those particular banks themselves (known as an on-us basis). With the introduction of the new guidelines, customers will now be able to withdraw from any bank’s ATM, not just their own.

ICCW can be used via most major UPI apps such as Google Pay and PhonePe – all you’ll need is a UPI app, an active internet connection on your mobile phone, and an ATM machine. However, do note that using ICCW, you can withdraw only up to Rs. 5,000.

Additional Reading: 4 Ways To Avoid UPI Fraud

How to Withdraw Cash from the ATM?

Here are the steps to withdraw money from the ATM using UPI:

  1. Visit the ATM of any bank and select the ‘Withdraw Cash’ option on the screen.
  2. Now, select the ‘UPI’ option.
  3. You will see a QR code displayed on the screen.
  4. Open the UPI-based app on your mobile phone (e.g. Google Pay, PhonePe).
  5. Open the QR code scanner option on your UPI-based mobile app.
  6. Scan the QR code shown on the screen of the ATM machine.
  7. You will now be able to withdraw cash (up to Rs. 5,000).
  8. Enter your UPI PIN.
  9. Tap the ‘Hit Proceed’ button.
  10. You will get your cash from the ATM machine.


Additional Reading: ATM Didn’t Dispense Cash? Account Debited? Do This

Any Additional Charges?

There’s good news here. There will be no additional charges for cardless cash withdrawal from ATMs using UPI. As per the RBI, “The on-us/off-us ICCW transactions shall be processed without levy of charges other than those prescribed (on Interchange Fee and Customer Charges).”

The charges for use of another bank’s ATM to withdraw cash via this cashless withdrawal method will remain the same as current card withdrawal charges. Since Jan 1, 2022, customers are allowed five free transactions every month at their own bank’s ATM. For the use of other banks’ ATMs, customers are allowed three free withdrawals in metro cities and five in non-metros. Subsequently, customers are charged Rs. 21 per transaction.

The Advantages

Amid a rise in the number of complaints about digital fraud, this move seeks to reduce chances of skimming, cloning and device tampering. Another advantage is that this would help work around the issue of delayed card issuance – an inconvenience faced by several customers due to a global chip shortage. Additionally, this facility would be useful in supporting large-scale re-carding in case of a data breach.

Simple, isn’t it? Cashless is the way forward. Another handy cashless payment method? Credit Cards, of course! Swipe or simply tap to pay with contactless technology.

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