• A good news again…. In a little while, people across the country will be able to withdraw money from ATMs using UPI.
  • Bank of India (BOI) in association with AGS Transact Technologies, an online payment systems provider, has launched a new product which will allow users to carry out UPI QR-based cash withdrawals.
  • This is said to be the India’s first UPI QR-based cash withdrawals service which will be available on Bank of India ATMs.

Issues faced:

  • Of-late, people are worried about ATM transactions due to rising ATM frauds, card skimming etc.
  • With the introduction of the new, we can use the QR Code on the bank’s Unified Payment Interface App and the ATM to make cash withdrawals without using the debit card/ATM card.
  • In order to avail this service, you need to be a Bank of India customer. The service is currently available at some of the bank’s ATMs in Mumbai.
  • The Bank plans to go for full rollout in three to six months.

How the facility works:

  1. Download the bank’s UPI app.
  2. Select the QR cash feature on the Bank of India ATM screen.
  3. Select the amount to be withdrawn and scan the QR code generated on the ATM screen using the “scan and pay” feature of the UPI app.

Users must be aware that in order to successfully conduct transactions through this, they need to know two PINs

  • One to open the bank’s UPI app and
  • Another for UPI transfers.
  • Here, a one-time password (OTP) is not required. Since this QR technology is interoperable, approval from the National Payments Corporation of India (NPCI) could make it universal.


  • This solution provides the next level of security for ATM transaction as there is no requirement of card and PIN.
  • This is extremely secure because even if you end up losing your phone, it will not necessarily lead to fraud since your PIN numbers are still required to use this facility.
  • The bank has capped withdrawals at Rs 2,000 per transaction as of now. The terms and conditions for the number of free withdrawals and withdrawal charges will remain the same as in the case of withdrawals carried out through debit cards.
  • Also it is said that for banks planning to deploy this on their ATM network, there is no major investment required as it is possible to offer the service by making a small upgrade to the existing software in ATMs.


It is worth mentioning that some other banks also offer cardless withdrawals from ATMs. For example, India’s largest public-sector lender SBI offer cardless withdrawal as well. You can use the SBI Yono app to set a cash withdrawal PIN. This PIN and an OTP allows users to make a cardless withdrawal from select SBI ATMs without any card.

India Post Payments Bank (IPPB) also uses this QR technology, however, it is a little different. IPPB issues plastic cards that dispense with the need for PIN using QR code. These cards also need an additional layer of biometric verification which makes it very safe and secure.

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