India's first UPI-ATM service was launched by the National Payments Corporation of India on September 5th, 2023. UPI-ATMs allow users to withdraw cash without a debit card and it makes the process faster and more convenient.
Banks are anticipating more people using ATMs after the launch of UPI-ATMs, which allow users to withdraw cash without a debit card. Hitachi Payment Services launched India's first UPI-ATM on September 5th, 2023, at the Global Fintech Fest in Mumbai, with the promise of secure cardless cash withdrawals.
Bank of Baroda's Executive Director Joydeep Dutta Roy told Moneycontrol that he expects a 25-30% increase in ATM footfall after the launch of UPI-ATMs using ICCW (Interoperable Cardless Cash Withdrawal) technology, certified by the National Payments Corporation of India (NPCI).
Bank of Baroda (BoB) has enabled UPI ATM withdrawals at over 6,000 ATMs across India. UPI, or Unified Payments Interface, is an online platform from NPCI that allows instant money transfers between bank accounts. Seventeen banks have so far been certified by NPCI for ICCW (Interoperable Cardless Cash Withdrawal) technology.
City Union Bank is one of the first banks to launch UPI ATM withdrawals at over 800 ATMs. Sankaran G, the bank's Chief Technical Officer (CTO), said that they are on track to enable the feature at all 1,600 ATMs by the end of the year.
Bank of Baroda (BoB) aims to enable UPI ATM withdrawals at over 7,000 ATMs across India by March 2024, says Executive Director Joydeep Dutta Roy. Senior officials at Indian Overseas Bank (IOB) and UCO Bank confirmed to Moneycontrol that they have applied to NPCI for ICCW certification and expect to receive it by next month. Once they have the certification, they will launch UPI ATM withdrawals.
Bank of Baroda is seeing an average of 1,000 UPI ATM withdrawals per day. The bank's executive director says that UPI apps support UPI ATM withdrawals. City Union Bank is seeing an average of 300 UPI ATM withdrawals per day.
Utkarsh Small Finance Bank has launched UPI ATM withdrawals at three locations so far and plans to roll out the feature to all ATMs by December 2023. Head of Consumer Banking Sanjay Sharda said that the bank expects a 25-30% increase in footfall as a result. He also said that the bank may replace some ATMs with small white-label ATMs that will be dedicated to UPI transactions.
Union Bank of India is expanding its UPI features at ATMs. By the end of this year, all of its ATMs across India will be UPI-enabled, according to AR Raghavendra, General Manager of Digitalisation. This is expected to increase footfall at ATMs and lead to a migration from debit cards to UPI.
UPI-ATMs and cardless cash withdrawals are both convenient ways to withdraw cash without a debit card. Cardless cash withdrawals typically use a mobile app and an OTP to verify the user's identity. UPI-ATMs, on the other hand, use a QR code to generate a one-time password (OTP).
Another difference is that UPI-ATMs can be used with any UPI-enabled app, while cardless cash withdrawals are typically limited to the bank's own app. However, UPI-ATMs offer more flexibility and convenience, as they can be used with any UPI-enabled app.