ATM cash withdrawal using UPI - benefits

Seamless banking: UPI ATM ICCW service making cash withdrawals effortless

In an era where the synergy between technological innovation and financial services shapes the backbone of consumer convenience, the advent of Interoperable Cardless Cash Withdrawal (ICCW) technology through Unified Payments Interface (UPI) heralds a significant milestone in India’s banking sector.


ATM booths are a familiar sight. Once an imperative of financial access in India, is now navigating a shifting landscape. While its role remains crucial, the onset of fintech solutions in everyday life, shifting consumer preferences, and the rise of digital alternatives are transforming its usage.

The Indian financial landscape is undergoing a dynamic shift. While ATMs remain a vital access point for physical cash, particularly for underbanked populations, the rise of digital payment options like the Unified Payments Interface (UPI) is influencing consumer behaviour.

UPI transactions have seen a significant surge, with a State Bank of India report highlighting a correlation: for every Rs. 1 increase in UPI transaction value, debit card transactions dip by 18 paise. This trend suggests a growing preference for digital payments, prompting the exploration of innovative solutions to ensure continued financial inclusion.

Furthermore, it has paved the way for Interoperable Cardless Cash Withdrawal (ICCW) technology, leveraging ATMs. This game-changer allows cash withdrawals without a physical card, utilizing mobile phones and PINs at any participating ATM, regardless of the issuing bank.

But will it translate into higher withdrawal numbers? Let’s delve into the potential impacts of ICCW on various stakeholders.

What is ICCW?

UPI-ATM cash withdrawal is an Interoperable Cardless Cash Withdrawal (ICCW) service that facilitates (participating) bank’s customers who are live on UPI, to withdraw cash from the participating banks’ ATMs (enabled for UPI-ATM) without using their card. UPI shall be used for customer authorization for such transaction and settlement shall be done in NFS ATM network.

This service not only caters to the growing consumer demand for digital-first solutions but also significantly mitigates risks associated with card-based transactions, such as skimming and cloning.

Advantages of UPI ICCW

While the long-term impact of ICCW on overall cash withdrawal volume remains uncertain, their unique functionalities offer compelling advantages for users, transforming the way they access and manage their cash needs. These advantages foster a more convenient, secure, and potentially inclusive financial experience.

  • Effortless Cash Access: Users can forego the need to carry and manage physical debit cards, opting for a simpler and more streamlined cash withdrawal experience through ATMs and their associated mobile applications. Customers no longer need to carry multiple cards to withdraw cash from different accounts, as ICCW allows cash withdrawals from multiple accounts linked to UPI.
  • Reduced Fraud Risk: ICCW eliminates the need for physical cards, thereby mitigating the risk of card-related fraud such as card skimming and card cloning. This translates to a more secure cash withdrawal experience.
  • Enhanced Transaction Security: The robust security infrastructure of UPI, coupled with user-generated PINs, provides a two-factor authentication system, minimizing the potential for unauthorized access to user funds.
  • Potentially reduce Transaction Fees: The potential for lower transaction fees compared to traditional ATMs, especially in remote areas, can incentivize cash withdrawals and promote financial inclusion for individuals who might be cost-conscious or unbanked. The potential reduction in transaction fees may be attributed to the reduced need for card readers, which are one of the most expensive, high-maintenance, and frequently damaged components of an ATM.

UPI – ATM User Journey Flow

  1. Locate a UPI-enabled ATM: Look for the UPI symbol or inquire with your bank about participating ATMs.
  2. Select “UPI Withdrawal” on the ATM screen.
  3. Enter your desired withdrawal amount.
  4. A single-use dynamic QR code will be displayed on the ATM screen.
  5. Launch your preferred UPI app on your smartphone.
  6. Select the “Scan QR code” or similar option within your app.
  7. Scan the QR code displayed on the ATM screen.
  8. Your UPI app will prompt you to confirm the transaction amount and select the linked bank account for debit.
  9. Enter your UPI PIN for authorization.
  10. Upon successful authorization, the ATM will dispense the requested cash amount.
  11. You will receive a transaction confirmation through your UPI app and a receipt from the ATM.


ICCW powered by Interoperable Cardless Cash Withdrawal have the potential to revolutionize cash access and offer significant advantages for users, businesses, and financial institutions.

While increased cash withdrawals remain uncertain, ICCW undoubtedly presents a paradigm shift in cash management. Its success hinges on collaborative efforts to address challenges and leverage opportunities, ultimately ensuring continued access to physical currency in a rapidly evolving digital banking landscape.

Mindgate has successfully implemented ICCW functionality on the UPI platform for banks.