The Unified Payments Interface (UPI) may be allowed to be used to withdraw cash from ATMs in future as per a report in Economic Times. In fact, Bank of India has already enabled this facility on some of its select ATMs through an arrangement with a company AGS Transact Technologies that facilitates payments. Bank of India plans to expand this to all its ATMs across the country, according to this report.
To withdraw cash, a user will have to initiate a cash out process using the QR code instructions on the ATM. A dynamic QR code will then be flashed on the ATM screen, which the user will have to scan using any UPI apps (such as Google Pay, PhonePe, BHIM, Paytm, etc) and withdraw money.
Now, this will mean the ATM machine has to be reprogrammed to carry out such withdrawals and it is learnt that the National Payments Corporation of India (NPCI), the organization responsible for the oversight of the UPI operations has initiated dialogue with banks on this issue. As per the ET report, NPCI has formed a committee that will review interoperability guidelines to open the feature for other bank customers as well.
Once the banks come on board, they will have to instruct their respective ATM machine manufacturers to incorporate changes to the machine and its software.
While Bank of India currently has the withdrawal feature only for its customers, opening up interoperability could allow customers of other banks to withdraw money from any ATM machine.
All these stakeholders may be favourably inclined to include this card-less cash withdrawal facility since it can bring down the frauds through skimming and cloning of cards. It has to be acknowledged that to a limited extent the card-less withdrawals using the Aadhaar cards has been tried but it is felt it requires more effort on the part of the customer at the ATM.
The banks and the UPI operators will have to accept on the interoperability terms, and it could then become easy.