Many of us today are settling most of our purchases and transactions using the UPI payment mechanism. And now, one can even withdraw cash from ATMs without a debit or credit card, by using UPI apps such as Google Pay, Paytm, PhonePe.
After the Reserve Bank of India’s (RBI’s) proposal, the National Payments Corporation of India (NPCI) introduced a feature called Interoperable Cardless Cash Withdrawal (ICCW), which allows people to withdraw from ATMs using their UPI apps.
It should be noted that a cardless cash withdrawal facility using UPI is currently only available for select banks. The banks offering a cardless card withdrawal facility include the State Bank of India(SBI), HDFC Bank, and Punjab National Bank (PNB).
What do you need to withdraw cash from ATMs using UPI apps?
You need a bank account and UPI payment apps such as GPay, PhonePe, and BHIM linked with that account. You should also have an active internet connection.
Withdrawing cash from ATMs without using debit or credit cards decreases the chances of transaction failure due to wrong PINs, or lost or stolen cards. That said, RBI Governor Shaktikanta Das has asserted that banks will not stop issuing debit cards following to the introduction of cardless cash withdrawal facilities at ATMs.