UPI ATM Cash Withdrawal: Limit, Benefits, How to Withdraw Cash from UPI ATM

UPI ATM cash withdrawal allows you to withdraw money from an ATM without using a debit or credit card. With the UPI cash withdrawal ATM feature, you can scan a QR code displayed at the ATM using any UPI app and enter your UPI PIN to complete the transaction. This service is based on Interoperable Cardless Cash Withdrawal (ICCW). 

What is Cash Withdrawal using UPI at an ATM?

UPI ATM cash withdrawal is a cardless way to withdraw money from ATMs using UPI apps like PhonePe, Google Pay, Paytm, etc. Launched in 2023, this feature allows users to scan a dynamic QR code generated at the ATM and authenticate the withdrawal using their UPI PIN. 

This system uses Interoperable Cardless Cash Withdrawal (ICCW) which is a secure method that reduces the risk of card-related frauds. Recent updates have introduced additional security measures and clarified how UPI ATM cash withdrawals are treated for ATM transaction limits.

Here are the key points users should know before withdrawing cash through a UPI-enabled ATM.

1. Flexibility

The system is compatible enough to allow individuals to use this facility with various bank accounts and also promote user flexibility with different bank accounts.

2. QR Code-Based UPI ATM Withdrawal

The ATM withdrawal uses QR scanning and use of QR codes, which makes the transaction efficient and secure. This eliminates the use of any debit or credit card in the ATM.

3. Transaction Limit

You are allowed to withdraw a maximum of ₹10,000 along with the existing limits of daily UPI transactions and terms of the specific bank. You must know that such limits differ from one bank to another.

4. Instant Dispensation

After your transaction is confirmed, your money is instantly dispensed in the UPI ATM, helping you to get a stress-free and quick transaction experience.

How to Withdraw Cash from ATM using UPI?

You can follow the following steps for cardless cash withdrawals from an ATM.

• Visit a UPI-enabled ATM.
• Select ‘UPI Cash Withdrawal’ on the ATM screen.
• Enter the amount you want to withdraw.
• A single-use dynamic QR code will appear.
• Scan it using your UPI app.
• Enter your UPI PIN to authorise the withdrawal. For certain high-value transactions, your UPI app may also require additional authentication, such as fingerprint or facial recognition verification, before the transaction is approved.
• Collect your cash after successful transaction confirmation.

The cash will be released by the ATM after the transaction is authenticated. 

UPI ATM Cash Withdrawal Limit

The UPI cash withdrawal ATM limit is ₹10,000 per transaction. It is part of the UPI limit of ₹1 lakh per day. It is also part of the limits set up by your bank.

UPI ATM Cash Withdrawal Benefits

UPI ATM cash withdrawal offers the following benefits:

1. Enhanced security

UPI ATM withdrawals eliminate card-related risks such as card cloning, skimming and card theft. Transactions are authenticated through UPI PIN verification and, in certain cases, may require additional biometric authentication such as fingerprint or facial recognition, providing an extra layer of security.

2. Accessibility

Accessing this facility is very easy las this service is available across most banks and ATMs supporting the UPI platform. Moreover, in case you still have not received your physical card after opening a new account, you can easily use this facility to withdraw money.

3. Convenience

This is a very convenient method of withdrawing money as you do not have to carry any physical card. So the hassle of losing the card or misplacement of the same is easily avoided.

4. Cash Withdrawals from Multiple Accounts

When you use your card for an ATM transaction, you can use only 1 account for the deduction of your money. However, in case of a UPI ATM transaction, you can choose the account of your choice for withdrawing the money. It is easy to link multiple accounts in your UPI app and thus can be used as you need.

List Of Banks Offering UPI ATM Cash Withdrawal

You can do the UPI ATM cash withdrawal at the following banks:

UPI ATM Cash Withdrawal Fees and Charges

NPCI does not levy any separate charge for UPI ATM cash withdrawals. However, the transaction is subject to your bank's ATM usage policies and applicable charges.

Monthly Free ATM Transaction Limit

Effective from June 2026, UPI-enabled cardless ATM withdrawals are also counted towards the monthly free ATM transaction limit available on your bank account. Once you exhaust the permitted number of free ATM transactions, standard ATM withdrawal charges may apply to subsequent UPI ATM cash withdrawals, as per your bank's schedule of charges.

Consumers should check their bank's latest ATM transaction policy for the applicable free transaction limits and charges.

Final Word

UPI ATM cash withdrawal offers a convenient way to access cash without carrying a debit card. By using a UPI app and scanning the ATM-generated QR code, users can withdraw cash securely and quickly from supported ATMs. With growing adoption across banks, UPI ATM withdrawals are becoming a simple and secure alternative to traditional card-based cash withdrawals.

Other related Articles:
1. UPI Transaction Charges & Limit Per Day
2. What is IMPS Transfer, Timings, and Limit?
3. What is UPI Lite: Transaction Limit Per Day, Supported Banks, How to Transfer Money?
4. How To Do UPI Payment Without Internet?
5. What is UPI ID? How to Create and Change UPI ID?
6. What Is NEFT?
7. What is White Label ATM