How to Withdraw Cash from ATM without Card Using Your Phone?

Thanks to UPI, now you can withdraw cash from any ATM using your mobile phone, even if you don’t have your ATM card with you at that time.

Last year, the Reserve Bank of India (RBI) announced it was allowing interoperable cardless cash withdrawals across all bank ATMs in the country. These transactions are processed using the Unified Payments Interface (UPI) facility.

Traditionally, debit cards are used to withdraw cash from bank ATMs, but it is possible with a phone. Recently, the Bank of Baroda and State Bank of India (SBI) started providing the option of interoperable cardless cash withdrawals at their ATMs.

As per the statement by the Chief Digital Officer at Bank of Baroda, Akhil Handa, “The interoperable cardless cash withdrawal facility being offered by the bank gives customers the freedom to withdraw money without the use of a physical card — it is a simple, convenient, and secure way to withdraw cash.”

Also Read: Now Use Credit Card to Make Payment through UPI: How to Link

You can read below how to withdraw cash using UPI from any bank’s ATM and to understand the key benefits of this facility.

What is an Interoperable Cardless Cash Withdrawal Facility? 

Using the interoperable cardless cash withdrawal facility, you can withdraw cash from any bank’s ATM, using the UPI facility.

For instance, if you have an account with Union Bank of India, but only an  ATM of the State Bank of India (SBI) nearby, you can withdraw cash from your Union Bank of India account at the SBI ATM using the UPI facility.

How to Withdraw Cash from ATM without Card using UPI?

Customers of SBI and other banks can withdraw cash seamlessly from interoperable cardless cash withdrawal-enabled ATMs of any bank by using the ‘UPI QR Cash’ functionality. The transaction will be facilitated through a single-use dynamic QR code displayed on the ATM screen.

Users can conveniently withdraw cash by employing the scan and pay feature available on their UPI application.

For example, suppose you have an account with SBI and want to withdraw cash using UPI from an ATM of the bank. You will require the SBI Yono or Yono Lite app installed on your mobile handset with a mobile banking facility.

Now, select ‘QR cash’ on the ATM screen. You will have two options displayed to withdraw cash, i.e. Rs 2,000 and Rs 4,000.

Select one option as per your requirement and scan the QR code displayed on the ATM screen using the ‘QR cash withdrawal’ option in the Yono app. The cash will then be dispensed by the ATM.

Also Read: Now Pay Charges on UPI Transaction over Rs 2K from 1st April

Bank of Baroda and other banks offer a similar facility to withdraw cash using the UPI facility through their mobile banking apps.

What is the maximum amount you can withdraw using the UPI ATM facility?

As per the current maximum limit set by RBI, we can carry out transactions of only up to Rs 1 Lakh through UPI every month. Hence, you can withdraw a maximum of Rs 1 lakh through the UPI ATM facility too.

However, withdrawal using this facility also has a cap imposed by banks. For instance, using the UPI facility, Bank of Baroda customers can avail of two transactions in a day per account, with a withdrawal limit of Rs 5,000 per transaction.

If you use the same bank account for other UPI transactions, the overall withdrawal limit will decrease accordingly.

Steps to Withdraw Cash from ATM using Mobile Phone:

Step 1: First of all visit your nearest ATM providing this facility.

Step 2: Now select “QR Cash” on the ATM screen.

Step 3: Here you will see two options on screen i.e. Rs 2,000 and Rs 4,000.

Also Read: RBI Declares to Withdraw Rs 2000 Note from the Circulation: 15 Points to Know

Step 4: Now scan the QR Code displayed on the ATM screen with “QR Cash withdrawal option in the SBI Yono app.

Step 5: The cash will be dispensed from the ATM.

Step 6: Now collect the cash and press the cancel button on the ATM keyboard.    

Benefits of using the cardless cash withdrawals facility  

This facility simplifies the cash withdrawal process and also ensures enhanced security for customers.

By eliminating the need to enter a PIN or physically handle a debit card, the interoperable cardless cash withdrawal facility minimises the risks associated with shoulder surfing or card cloning.

“Besides avoiding the risk of misplacing or losing one’s card, the solution will aid in containing frauds such as skimming, cloning, and device tampering,” says Mandar Agashe, MD & Vice Chairman, Sarvatra Technologies, a banking solution provider to banks and fintechs.

Besides enhancing security, cardless withdrawals through UPI offer users greater freedom to avail of withdrawals anywhere, anytime at their own ease, without a physical card.

“This has taken convenience a notch higher and is likely to be favoured by audiences, especially those belonging to the millennial and Gen Z cohorts,” says Agashe.

He adds that younger audiences are already accustomed to making all digital payments via mobile phones, using UPI instead of a debit card. Now, they will also be able to avail of cash withdrawals using their mobile phones, through UPI.

The sheer convenience will prove to be extremely attractive to the youth, who prefer not carrying their debit cards.

What to do if this cardless withdrawing facility fails at an ATM?

If a withdrawal fails at an ATM due to a technical glitch and the amount gets deducted from your account, inform your bank immediately. The amount will be credited back into your bank account within seven working days.

This news article was originally published at moneycontrol, here edited and published by the telegraph editor.