India's First UPI-ATM Launched

India’s first UPI-ATM launched: All you need to know

India’s first UPI-ATM launched – At the Global Fintech Fest in Mumbai on Tuesday, Hitachi Payment Services, a division of Japan-based Hitachi, unveiled India’s first UPI-ATM in partnership with the National Payments Corporation of India (NPCI). This allows users to withdraw money without using a debit or credit card.

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A mobile payment mechanism called United Payments Interface, or UPI, is run by NPCI and enables instantaneous, cost-free money transfers between bank accounts.

The introduction of the UPI-ATM, which seamlessly integrates UPI’s ease and security into conventional ATMs, will represent a key turning point in financial services. According to NPCI, this novel idea aims to make instant access to cash possible even in distant parts of India without the use of a physical card.

Here’s all you need to know about the new ATM.

What is a UPI ATM? –India’s first UPI-ATM launched

White label ATMs like UPI-ATM enable cardless cash withdrawals. Non-banking organizations are the owners and operators of white label ATMs. Customers of partnering banks may use their UPI accounts to make cash withdrawals without an ATM or debit card.

Customers may already utilize it at the Global Fintech Fest, and in a few months, implementation will begin in additional places.

How does it work? – –India’s first UPI-ATM launched

On the ATM, users must choose the “UPI cash withdrawal” option and enter the desired withdrawal amount. On the screen will appear a unique QR code. The user may then enter their pin, scan the QR code on the screen using any UPI software on their phone, and get the money.

Key features – India’s first UPI-ATM launched

The UPI-ATM’s withdrawal cap is Rs 10,000 per transaction. Depending on the UPI-ATM transaction restrictions imposed by the issuer bank, this may change.

Unlike the OTP-based withdrawals now provided by banks, this ATM allows for QR code-based cash withdrawals. People may use their UPI applications to withdraw money from a variety of accounts.

According to Hitachi Payment Services, the UPI-ATM will also reduce the chance of criminals “skimming” transactions and promote financial inclusion.

Other NPCI launches – India’s first UPI-ATM launched

A credit line on UPI, UPI Lite X for offline payments, and a Tap & Pay feature that supports near field communication (NFC) were among the new products that NPCI introduced at the Global Fintech Fest.

What is the features in old technology ATM?

Automated Teller Machines, or ATMs, are defined as electronic banking facilities that enable clients to execute simple transactions without the assistance of a bank person.

The main advantages of ATMs are their convenience and accessibility. An ATM may handle tasks including deposits, cash withdrawals, transfers between payments, and bill payments.

The two main types of ATMs are. Customers can withdraw cash from the basic ATM and get information about their most recent account balances. The most sophisticated ATMs provide more complicated services including line of credit payments, account deposits, payment facilitation, and access to account information.

Did you know ATM can be categorized according to the label assigned?

ATMs with a brown label are those run by businesses other than banks or credit unions.
Green label: ATMs that support agriculture
Useful for sharing transactions, orange label
Pink label: ATMs made exclusively for women to avoid lengthy lines and waiting periods
Black label: These ATMs were created by TATA Group and represent certain organizations rather than being owned by banks.
ATMs with a yellow marking are those used for online shopping
To make a purchase, consumers must utilize a plastic card, such as a bank debit card or a credit card. The transaction is finished after successful authentication with a PIN.

A typical ATM contains the following parts: –

Card Reader: This component of the device reads the magnetic stripe on the back of the inserted card or the chip put on the front of the card.
Screen: The user is guided through a service by the screen, which serves as a cue. Along with information, the screen displays the account balance.
Keypad: The user enters information such as the transaction’s personal identification number (PIN) and transaction amount using the keypad on an ATM.
Cash Dispenser: A cash dispenser is a slot used for dispensing cash that is permanently attached to a safe located at the base of the ATM.
Printer: Clients can print receipts for previous transactions using the printer.

Advanced ATMs have slots to deposit cash and paper checks.

Cash withdrawals typically cost roughly USD 60 each transaction. Typically, consumers are not charged to use their bank’s ATM. However, if consumers use their bank’s card in an ATM run by another bank, they could have to pay a little fee. However, consumers often do not incur any additional fees and are reimbursed if there are no other ATMs nearby.

ATMs are owned by banks and credit unions, but people and businesses can rent or purchase them through an ATM franchise. The majority of the time, these people or organizations impose fees on computer users.

Working of old technology ATM

Internet service providers are essential to the smooth operation of ATMs. The link between the host processors and the atm is stabilized. The cardholder adds information after a translation has been started. These are given to the host processors, who examine the information and provide authorisation. Host processors send an approval code for the transaction when the information is confirmed.

Through the use of powerful software such as Triple Data Encryption Slandered, ATM cards are securely protected against theft. The automated teller machine operates on a pretty straightforward idea. Digital transaction services are controlled by a straightforward terminal with two input and four output devices.

An interfaced processor is connected to each component of the devices. The processor redeems money from the cardholder’s account if they want to withdraw cash. An approval code is sent when the money has been deposited in the host processor’s account, and the needed amount of cash is then distributed.

A step-by-step algorithm for operating the ATM is mentioned down below.

Place your ATM card in the cardholder at the ATM that is most convenient for you.
With the use of the buttons on the screen’s side, select the language you like to be shown on the display.
Choose the transaction you want to complete.
For the transaction, choose the appropriate account type.
Now, key in your PIN and the withdrawal amount using the keypad.
When the transaction is over, wait a short while before obtaining your money from the cash dispenser.
You have two options: either hit the exit button to depart and leave after collecting the receipt you desire.

A mix of hardware and software is used in ATM design. Cash deposits and withdrawals, credit card payments, and account information entry and retrieval are all hardware designs. ATM transactions are controlled by software.