In a groundbreaking move that promises to redefine the way we interact with ATMs, multiple banks in India have launched the Interoperable Cardless Cash Withdrawal (ICCW) feature. This innovative feature allows consumers to withdraw cash from ATMs using the Unified Payments Interface (UPI), eliminating the need for physical debit cards.
The Convergence of UPI and ATM
The launch of ICCW is a significant milestone in the Indian banking sector, marking the convergence of UPI and ATM technologies. This initiative is a collaborative effort involving the National Payments Corporation of India (NPCI) and Hitachi Payments. The feature aims to offer secure, card-less cash withdrawals and is India’s first-ever UPI ATM service.
How Does It Work?
To avail of this service, users need to locate a UPI-compatible ATM and follow these steps:
- Select the “UPI Cardless Cash” or “UPI Cash Withdrawal” option on the ATM screen.
- Enter the amount you wish to withdraw. The denominations available are 100, 500, 1,000, 2,000, and 5,000, depending on the ATM.
- Confirm the transaction on your UPI app.
Transaction Limits
The withdrawal limit for UPI ATMs is capped at Rs 10,000 per transaction. This limit is part of the existing daily UPI limit and varies according to the issuer bank’s policies for UPI-ATM transactions.
Benefits and Implications
- Convenience: No need to carry a debit card for ATM transactions.
- Security: Reduced risk of card skimming and other fraudulent activities.
- Flexibility: Ability to withdraw cash from multiple accounts using a single UPI app.
Key Takeaways
- Multiple banks in India have introduced the ICCW feature, enabling UPI-based cash withdrawals at ATMs.
- The service is a collaboration between NPCI and Hitachi Payments.
- Users can withdraw up to Rs 10,000 per transaction, subject to daily UPI limits.
- The feature enhances convenience, security, and flexibility for consumers.
Important Information
- Transaction Limit: Rs 10,000 per transaction
- Partnership: NPCI and Hitachi Payments
- Availability: UPI-compatible ATMs
By embracing this revolutionary feature, the Indian banking sector has taken a significant step towards enhancing consumer convenience and security. The integration of UPI and ATMs is not just a technological advancement; it’s a leap towards a more inclusive and efficient financial ecosystem.
