Banking has undergone a profound change recently due to the advent of the internet and smartphones, completely transforming how we handle our financial affairs. Banks are increasingly employing smart technologies to enhance the convenience and accessibility of automated teller machine (ATM) withdrawals, particularly for individuals who may prefer alternatives to card-based transactions.
Here are a few methods through which this is being accomplished:
- ATM withdrawals using Unified Payments Interface (UPI) (India-specific) method utilizes the UPI, a widely used digital payment system in India. It allows you to withdraw cash directly from ATMs using your smartphone and a UPI app. Similar to cardless withdrawals, you start the process on your phone and authenticate the transaction with a PIN.
Pros and cons of UPI ATM withdrawals
Please be aware that UPI ATM withdrawals usually have a transaction limit of ₹10,000 per transaction, adhering to UPI’s daily limits and individual bank regulations.
One major benefit of UPI ATMs is their interoperability, allowing you to withdraw cash from any participating bank’s ATM, irrespective of your bank affiliation, provided both banks support UPI withdrawals.
Using the UPI service adds an additional layer of security compared to traditional card withdrawals. By utilizing your UPI PIN for authorization, it eliminates the risk of skimming or card cloning.
These advancements provide several advantages:
While they are new features, cardless ATM withdrawals and UPI-based withdrawals (in India) are not yet generally accessible. Additionally, it’s advisable to contact your bank directly to confirm their support for cardless ATM withdrawals or UPI ATM withdrawals (in India). You can check their website, mobile app, or contact customer service for the most up-to-date information.