In this modern era of digital banking, withdrawing cash from an ATM no longer requires a physical debit or credit card. Unified Payments Interface (UPI) now allows a new and secure method to make cardless withdrawals, which is available at thousands of ATMs across the country.
This service is known as Interoperable Cardless Cash Withdrawal (ICCW), which allows a UPI user to get cash by simply scanning a QR code.
The UPI method: How ICCW works
The most popular and convenient way to get cash without a card is through UPI. This system is interoperable, meaning you can use a supported ATM from any bank, regardless of where you hold your account.
At the ATM: Select the “UPI Cash Withdrawal" or "Cardless Cash" option on the ATM screen to start the process.
Enter amount: Type the desired amount, and the machine will then display a unique, single-use QR code on the screen.
Scan with app: Open any UPI-enabled app on the smartphone (Google Pay, PhonePe, Paytm, or your BHIM UPI app). Use the app’s scanner to scan the QR code displayed on the ATM.
Authorise: Select the desired bank account from the UPI app. After selection, enter the secure UPI pin to authorise.
Collect cash: Once the transaction is approved, the ATM will process the request and dispense the cash.
Bank-specific mobile app methods
Long before the UPI-based ICCW system was introduced, several major banks offered their own cardless withdrawal services exclusively through their proprietary mobile banking apps.
This method is still active with banks like SBI (via YONO) and ICICI (via iMobile). It requires a customer to first log into their bank's specific app, initiate a “cardless withdrawal” request, and set a temporary PIN. The bank then sends a one-time password (OTP) or reference number via SMS.
The customer then needs to visit the same bank’s ATM and enter their mobile number, the temporary PIN, the OTP, and the exact withdrawal amount to get their cash. While being secure, this method lacks the interoperability that makes the new UPI system so convenient.
Limits and security benefits
For UPI-based cardless withdrawals, the transaction limit is typically set at ₹10,000 per transaction, although this may vary slightly between banks. The daily withdrawal limit is governed by the bank's overall daily UPI transaction cap.
The primary benefit of this system is enhanced security. Since a physical card is not required, it is protected from skimming devices that thieves attach to ATM slots to steal card data. Furthermore, the transaction is secured by a private UPI PIN, which is never shared with the ATM, making it a safer alternative to traditional withdrawals.
