The UPI ATM is a new way of withdrawing cash without using a card. UPI stands for Unified Payments Interface, which is a payment system that allows you to transfer money instantly using your mobile phone. The UPI ATM uses the same system to let you scan a QR code with your UPI app and enter your UPI PIN to get cash from the ATM.
Advantages of UPI ATM:-
Some of the advantages of using a UPI ATM are:
1:-It is more secure than using a card, as there is no risk of card skimming, cloning, or fraud by third parties .
2:-It is faster and more convenient than using a card, as you do not need to insert your card, enter your card PIN, select your account type, or wait for the receipt .
3:-It is more inclusive and accessible than using a card, as it can be used by anyone who has a UPI app and a bank account that supports UPI. You do not need to have a specific bank’s card or app to use the UPI ATM .
4:-It is more innovative than using a card, as it uses the Interoperable Cardless Cash Withdrawal (ICCW) technology, which is powered by the National Payments Corporation of India (NPCI). The NPCI is the umbrella organisation for operating retail payments and settlement systems in India
Disadvantage of UPI ATM:-
Some of the disadvantages of using a UPI ATM are:
1:-It may not be available everywhere, as it depends on the availability of white label ATMs, which are owned and operated by non-banking entities. There may be fewer white label ATMs than bank-owned ATMs in some regions .
2:-It may have higher charges than using a card, as white label ATMs may charge higher fees than bank-owned ATMs for cash withdrawals. The fees may vary depending on the operator and the bank .
3:-It may have lower limits than using a card, as the withdrawal limit for the UPI ATM is Rs 10,000 per transaction. This may not be sufficient for some customers who need more cash at once .
4:-It may have technical issues or glitches than using a card, as it relies on the internet connectivity and the functionality of the UPI app and the QR code scanner. There may be cases where the transaction fails or gets delayed due to network problems or software errors .