How to Withdraw Money from ATM Without Card: The Simple UPI Method

Monthly ATM withdrawal volumes have declined from 57 crore transactions to just 48.83 crore—a 14.3% drop in 24 months. But how to withdraw money from ATM remains an essential need for most of us, even as digital payments grow.

Have you ever reached an ATM only to realize you left your card at home? Frustrating, right? Thankfully, there’s now a simpler solution. UPI-ATM, also known as Interoperable Cardless Cash Withdrawal (ICCW), lets you withdraw cash from ATMs without a debit card. This innovative service connects through the National Financial Switch network, linking over 100,000 ATMs across India.

Essentially, all you need is your smartphone and a UPI app. You can withdraw up to ₹10,000 per transaction, staying within your daily UPI limits. Instead of inserting a card, you simply scan a QR code displayed on the ATM screen and authorize the transaction through your UPI app.

In this guide, we’ll walk you through the complete process of cardless cash withdrawal using UPI, explain which banks support this feature, and share everything you need to know about this convenient alternative to traditional ATM withdrawals.

What Is UPI-ATM and How It Works

UPI-ATM represents a significant advancement in banking technology, launched on September 5, 2023, in Mumbai as India’s first cardless ATM service. This innovation combines digital and physical transactions, transforming how we access cash from ATMs.

Understanding Interoperable Cardless Cash Withdrawal (ICCW)

ICCW (Interoperable Cardless Cash Withdrawal) is the technical term for the UPI-ATM service developed by the National Payments Corporation of India (NPCI). Unlike traditional cardless withdrawals that rely on mobile numbers and OTPs, UPI-ATM uses QR-based withdrawal mechanisms. This system operates through the National Financial Switch (NFS) network, connecting over 100,000 ATMs across India.

The primary difference between standard cardless withdrawal and UPI-ATM lies in the process. Traditional cardless withdrawals require initiating requests through NetBanking, adding beneficiaries, and entering OTPs – a time-consuming multi-step process. Conversely, UPI-ATM offers an immediate solution through QR code scanning.

How UPI replaces your ATM card

During a UPI-ATM transaction, your smartphone effectively becomes your card. The process works through dynamic QR codes that authenticate transactions securely. When you select “UPI Cash Withdrawal” at the ATM, you’ll enter your desired amount, scan the generated QR code with your UPI app, and authorize with your UPI PIN.

This approach offers several advantages:

1. Enhanced security through elimination of card skimming risks
2. Ability to access multiple bank accounts from a single UPI app
3. No need to carry physical cards
4. Faster transactions with fewer steps

Furthermore, each QR code is single-use and dynamic, adding another layer of security compared to traditional card transactions.

Supported UPI apps and ATM networks

Currently, several major banks support UPI-ATM withdrawals, though availability varies across institutions. Supported issuer and acquirer banks include SBI, Bank of Baroda, Canara Bank, Union Bank, Yes Bank, Indian Bank, and Indian Overseas Bank. Additionally, some banks like ICICI and PNB function as acquirer-only ATMs, accepting customers from other banks.

For apps, you can use BHIM, Google Pay, and other UPI-enabled applications that support ICCW functionality. However, both your bank and the ATM’s acquiring bank must support the feature for successful transactions.

Transaction limits are set at ₹10,000 per withdrawal, though individual banks may impose stricter limits, such as Bank of Baroda’s ₹5,000 per transaction cap with a maximum of two transactions daily per account.

Step-by-Step Guide to Withdraw Money Without a Card

_{Image Source: Easebuzz}

Withdrawing cash without a physical card is now remarkably straightforward with UPI-ATM technology. The process takes just a few minutes and requires only your smartphone with an active UPI app. Let me walk you through the entire procedure step-by-step.

1. Visit a UPI-enabled ATM

First, locate an ATM that supports UPI-based withdrawals. Look for “UPI Cash Withdrawal” or “ICCW” indicators on the ATM façade or screen. While this feature is expanding rapidly, not all ATMs support it yet. Major banks including SBI, Bank of Baroda, and Yes Bank offer this service at their ATMs.

2. Select ‘UPI Cash Withdrawal’ on the screen

Once at the ATM, rather than inserting your card, select the “UPI Cash Withdrawal” option displayed on the screen. Depending on the ATM, you might see alternative labels like “ICCW” or “Interoperable Cardless Cash Withdrawal”.

3. Enter the withdrawal amount

Next, specify how much cash you wish to withdraw. You can either select from preset amounts or enter a custom figure. Remember that UPI-ATM transactions have a limit of ₹10,000 per transaction, so plan accordingly if you need larger sums.

4. Scan the QR code using your UPI app

After entering the amount, the ATM generates a single-use dynamic QR code on the screen. This code remains valid for approximately 30 seconds. Open your UPI application (like Google Pay, BHIM, or Paytm), and use the scan function to capture this QR code.

5. Authorize with UPI PIN

Upon scanning, your UPI app will display the transaction details with the amount pre-filled. Select which bank account you want to withdraw from if you have multiple accounts linked. Finally, authorize the withdrawal by entering your UPI PIN.

6. Collect your cash and confirmation

After successful authorization, the ATM will process your request and dispense the cash. The machine will then provide a transaction receipt if requested. Throughout this process, you’ll receive notifications on both the ATM screen and your mobile device confirming the successful transaction.

Benefits and Features of UPI ATM Withdrawals

UPI-based ATM withdrawals offer several game-changing advantages for everyday banking customers. Let’s explore the key benefits that make this technology particularly valuable.

No need for physical debit or credit cards

Forgetting your ATM card at home becomes a non-issue with UPI-ATM technology. You simply need your smartphone with a UPI app installed to complete cash withdrawals. This eliminates worries about lost, damaged, or stolen cards altogether.

Enhanced security with dynamic QR codes

UPI ATM withdrawals utilize single-use dynamic QR codes displayed on the ATM screen, valid for just 30 seconds. This two-factor authentication process—combining device binding and PIN entry—effectively eliminates common fraud risks like card skimming or cloning. Every transaction runs on encrypted APIs and tokenized identifiers.

Withdraw from multiple linked bank accounts

Unlike traditional card-based withdrawals limited to a single account, UPI-ATM lets you choose from any account linked to your UPI app. This flexibility means no more carrying multiple cards for different accounts.

Works across banks and ATM networks

The service operates across various participating banks thanks to its interoperable design. This widespread accessibility makes UPI-ATM a convenient option regardless of where you bank.

Ideal for new account holders without cards

Newly opened accounts often have waiting periods for physical cards. UPI-ATM provides immediate cash access even before receiving your physical card, making it perfect for new customers.

Limits, Banks, and Fees You Should Know

Understanding transaction limits remains crucial for successful UPI-ATM withdrawals. Let’s explore the key parameters you should know before using this convenient service.

Per transaction and daily withdrawal limits

The maximum amount you can withdraw through UPI-ATM is ₹10,000 per transaction. This limit falls within your existing daily UPI transaction ceiling of ₹1 lakh. Nevertheless, specific banks might impose stricter restrictions on their customers. Moreover, each bank sets its own UPI-ATM transaction limits according to their policies.

List of banks supporting UPI-ATM

As of now, numerous banks across India support UPI-ATM withdrawals:

Major Banks:

• State Bank of India
• Bank of Baroda
• Union Bank of India
• Yes Bank
• Canara Bank
• IndusInd Bank
• Central Bank of India

Additionally, several small finance banks and regional rural banks offer this service, including Ujjivan, Equitas, and Fincare Small Finance Banks. For customers of non-issuing banks, certain ATMs like those from ICICI and PNB function as acquirer-only terminals, accepting customers from other banks.

Are there any charges for UPI ATM withdrawals?

Regarding fees, NPCI does not levy any specific charges for UPI-ATM transactions[223]. Yet, standard ATM transaction fees still apply based on your account type and monthly transaction allowance. These charges remain identical to those of conventional card-based withdrawals, irrespective of whether you use UPI or physical cards.

Conclusion

UPI-ATM represents a significant advancement in banking technology, offering a seamless alternative to traditional card-based withdrawals. This innovative service effectively bridges the gap between digital payments and physical cash needs, making forgotten cards a problem of the past. Most importantly, the enhanced security features with dynamic QR codes protect you against common ATM fraud tactics like card skimming.

Additionally, the flexibility to access multiple bank accounts through a single UPI app streamlines your banking experience. Though relatively new, UPI-ATM functionality continues to expand across India’s banking network, with major institutions already supporting this feature. The standard transaction limit of ₹10,000 per withdrawal certainly meets most everyday cash requirements while maintaining necessary security controls.

As digital banking evolves, UPI-ATM stands as a perfect example of how technology can simplify financial transactions without sacrificing security. Whether you’ve forgotten your card, are waiting for a new one, or simply prefer cardless options, UPI-ATM provides a reliable solution for accessing your funds. Next time you need cash, consider trying this convenient method – all you need is your smartphone and UPI app to experience banking that truly adapts to your lifestyle.

Key Takeaways

UPI-ATM technology revolutionizes cash withdrawals by eliminating the need for physical cards, offering enhanced security and unprecedented convenience for modern banking customers.

• Withdraw cash using only your smartphone – Simply scan a QR code at UPI-enabled ATMs and authorize with your UPI PIN, no physical card required

• Enhanced security with dynamic QR codes – Single-use codes valid for 30 seconds eliminate card skimming risks and provide two-factor authentication

• Access multiple bank accounts from one app – Choose from any linked account in your UPI app, eliminating the need to carry multiple cards

• ₹10,000 per transaction limit across major banks – Works with SBI, Bank of Baroda, Yes Bank, and other participating institutions nationwide

• Perfect solution for forgotten or missing cards – Ideal for new account holders waiting for cards or anyone who’s left their card at home

This cardless withdrawal method represents the future of ATM banking, combining digital convenience with physical cash access while maintaining robust security standards.

FAQs

Q1. Can I withdraw money from an ATM without a physical card? Yes, you can withdraw money from ATMs without a physical card using the UPI-ATM method. This involves using your smartphone with a UPI app to scan a QR code displayed on the ATM screen and authorizing the transaction with your UPI PIN.

Q2. What is the maximum amount I can withdraw using UPI-ATM? The general limit for UPI-ATM withdrawals is ₹10,000 per transaction. However, this amount is subject to your daily UPI transaction limit of ₹1 lakh and any specific restrictions set by your bank.

Q3. Which banks support UPI-ATM withdrawals? Several major banks support UPI-ATM withdrawals, including State Bank of India, Bank of Baroda, Union Bank of India, Yes Bank, Canara Bank, and IndusInd Bank. Some small finance banks and regional rural banks also offer this service.

Q4. Is UPI-ATM withdrawal more secure than using a physical card? UPI-ATM withdrawals offer enhanced security compared to physical cards. They use dynamic QR codes valid for only 30 seconds and require two-factor authentication, effectively eliminating risks like card skimming or cloning.

Q5. Are there any additional fees for UPI-ATM withdrawals? There are no specific charges levied by NPCI for UPI-ATM transactions. However, standard ATM transaction fees may apply based on your account type and monthly transaction allowance, similar to conventional card-based withdrawals.