Soon, 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 will be India’s first UPI QR-based cash withdrawals service which will be available on Bank of India ATMs.
It may be noted that lately, people have been worried about ATM transactions due to rising ATM frauds, card skimming etc. With this new system, you can use the QR Code on the bank’s Unified Payment Interface App and the ATM to make cash withdrawals without using your 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 full rollout is planned in three to six months.
Here’s how this facility will work:
1. You need to 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 Select the amount to be withdrawn and scan the QR code generated on the ATM screen using the “scan and pay” feature of the UPI app.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 know that in order to successfully conduct transactions through this, they need to know two PINs the one to open the bank’s UPI app and the PIN for UPI transfers. 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.
Chairman, Bank of India, G. Padmanabhan said in a statement, “This solution provides the next level of security for ATM transaction as there is no requirement of card and PIN. Know that 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.
“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,” said Ravi Goyal, chairman and managing director, AGS Transact Technologies.
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….Read more>>