What makes the withdrawal cardless?
The customer does not present the physical payment card for the supported transaction. Instead, the ATM and UPI application provide the relevant initiation and authorisation interaction.
NPCI’s UPI ATM guidelines describe ICCW at participating banks’ enabled ATMs. They explain use of the QR code displayed on the ATM screen and customer authorisation through the UPI application.
The ATM still dispenses the cash. The payment application is not a promise that cash can be collected from any person displaying a merchant QR code.
What does “interoperable” mean here?
It concerns the supported relationship between participating UPI issuer members and participating ATM-network members. The facility is designed to work across the relevant enabled institutions rather than requiring the customer to use only a card from the ATM operator.
Participation matters. A familiar bank name on a machine does not establish that the particular ATM supports ICCW. A customer’s use of UPI for ordinary purchases does not establish that every app/bank combination supports this withdrawal.
Check the options offered by the actual machine and the bank/app’s current instructions before starting.
UPI ATM, ordinary UPI payment and AEPS
| Interaction | What the customer is trying to do |
|---|---|
| UPI ATM withdrawal | Obtain cash from an enabled ATM using the supported UPI process |
| Ordinary merchant UPI payment | Pay a merchant through the relevant payment arrangement |
| AEPS counter withdrawal | Obtain cash through an enabled Aadhaar-based banking-counter arrangement |
The use of UPI or a QR code does not make all three the same service. A shop should not offer an unofficial cash-out transaction merely by putting a merchant QR code on the counter.
Our Mini ATM and shop-cash checklist covers the separate counter setup. Our AEPS guide explains Aadhaar-enabled banking roles.
What should the customer inspect on screen?
Use the withdrawal option presented by the enabled ATM and follow the legitimate app flow. Read the requested amount and action before authorising. The customer should control their phone and keep their UPI PIN private.
A QR code displayed for a specific ATM interaction is different from an unrelated sticker or a code supplied by a stranger. If the instructions do not match the expected withdrawal, stop and use the bank’s official support channel.
After authorisation, observe the machine’s actual response and retain the transaction information. App authorisation, account debit and physical cash dispensing are connected stages, but a customer complaint must establish what happened at each.
An example of a cash-not-received enquiry
Illustrative example: A customer completes a supported UPI ATM request but says the machine did not dispense cash. They later ask a nearby retailer to “refund the UPI”.
The retailer explains that the ATM/bank transaction needs the responsible institution’s investigation. The customer retains the time, amount, machine location and transaction reference and contacts the official bank/payment support route.
The shop cannot resolve the ATM’s dispensing record by sending another ordinary UPI payment. Nor should it promise a refund deadline without identifying the applicable transaction and current rules.
Questions about UPI ATM
Can every ATM provide it?
No. The facility requires an enabled machine and participating institutions. Check the actual service offered.
Does “cardless” mean no authentication?
No. The supported UPI authorisation process replaces the physical-card interaction for the relevant service.
Is a UPI ATM always only for withdrawal?
NPCI’s current guidelines also discuss other supported services, including cardless deposit arrangements. This page focuses on ICCW withdrawal; do not assume every enabled machine offers every listed service.