The first interoperable cardless cash-withdrawal (ICCW) solution based on the Unified Payments Interface (UPI) platform has been introduced by NCR Corporation, a manufacturer of automated teller machines (ATMs). City Union Bank has collaborated with NCR to develop this new facility, according to the lender. The bank has already modified 1,500 ATMs to facilitate interoperable cardless cash withdrawals using QR code.
How does it work?
Customers can now withdraw cash from any UPI-enabled app, such as BHIM, Paytm, or GPay, using their mobile phone. While visiting UPI-enabled ATMs, there is no need to swipe or carry a card. A user must check the QR code on the screen and confirm cash withdrawal via their mobile phone. The QR code will be changed on a regular basis to ensure that transactions are safe and secure. The withdrawal limit is currently set at Rs 5,000. As it is a UPI-based extension of the UPI app, it does not require any additional regulatory approval. Navroze Dastur, managing director for India and regional vice-president for South East Asia at NCR Corporation, told PTI that "What we have done is that we upgraded the existing software to allow this mode of transaction on existing ATMs of City Union Bank. There is no hardware upgrade or change." He also told PTI that "NCR and National Payments Corporation (NPCI) are in the final stage of discussions with some public and private sector banks and a formal association with them will be announced shortly". N Kamakodi, managing director of City Union Bank told PTI that "We have partnered with NCR to deliver ICCW solution that will enable us to deliver this next-generation solution to our customers which will allow them card-less cash withdrawal using UPI QR code at our ATMs."
How secure it is?
Considering the security standpoint, this is the best secure facility ever, as there is no way for the card to be scrolled for one and there is no need to swipe the card, nor even hold it physically. Next, unlike the UPI App, the transaction is based on a dynamic QR code, which cannot be copied because the code changes with each transaction. With this integrated cardless cash withdrawal facility based on a dynamic QR code, you can withdraw money from any bank's ATM if it has been upgraded.
How to use this facility?
You need to first open any UPI app on your smartphone i.e. GPay, BHIM, Paytm, Phonepe, Amazon to withdraw cash from the ATM. Following that, the QR code shown on the ATM screen must be scanned. Once the scanning is over, you must enter the amount you want to withdraw and then hit the Proceed button. You will then be asked for a 4 or 6-digit UPI PIN, which you will get from the ATM. Once you verify the UPI PIN you will get the cash instantly. You will be allowed to withdraw only Rs 5,000 at a time in the beginning.
What is UPI?
The Unified Payments Interface (UPI) is a real-time payment platform that helps you to transfer money from one bank account to another using a mobile app. All you have to do is add your bank account to the UPI app for this to work. With a single UPI app, you can handle multiple bank accounts and transfer funds online just in a matter of seconds. To generate a UPI account, simply download one of the apps i.e. Google Pay, PhonePay, BHIM UPI, Paytm, Amazon etc. Following that, you must register and enter your mobile number. After that, you'll need to link your bank account for which you may be asked to enter your bank's name, account number, IFSC Code and branch. After that, you must provide the specifics of your ATM card in order to complete the process. Your UPI account will be activated once the provided details of your bank account, mobile number and ATM is successfully verified.