Till now you used UPI only for online payments but now soon you will be able to withdraw cash without ATM card with its help. This new system will prove to be very beneficial especially for the people of rural and small towns where the facilities of banks and ATMs are less.
How will this new system work?
In this new method, you will not need to go to any ATM or bank branch to withdraw cash. You will be able to scan the QR code using any UPI app from your smartphone which will be installed at the Business Correspondent outlets. These correspondents work like small branches of the bank and provide banking services in remote areas.
Step 1: You will scan the QR code at the Business Correspondent’s outlet using your UPI app.
Step 2: Enter the amount you want to withdraw and enter your UPI PIN.
Step 3: The money will be deducted from your bank account and deposited directly into the correspondent’s account.
Step 4: After this you will be able to take cash directly from them.
What is better than the old system?
Earlier, there was a facility to withdraw cardless cash at some selected ATMs but it was very limited. This new method will work even without biometric (fingerprint) or ATM card, which will help those who have difficulty using them.
Waiting for the green signal from RBI
Currently, the approval of the Reserve Bank of India (RBI) is awaited to implement this facility. NPCI (National Payment Corporation of India) wants to start this system as soon as possible so that more and more people can easily withdraw cash digitally.
After the implementation of this facility, the scope of digital payment will increase even more and it will especially benefit those people for whom it is difficult to reach the bank or ATM.