Now withdrawing cash through your smartphone will soon become much easier.
UPI (Unified Payments Interface), which people commonly use for sending money, paying bills, and online shopping, may also be used for cash withdrawal.
According to reports, the National Payments Corporation of India (NPCI) is preparing to launch a facility where people can withdraw cash by simply scanning a QR code.
For this, lakhs of Business Correspondents (BCs)—such as grocery shopkeepers or small service points—will provide QR codes.
Customers will then be able to scan the code from any UPI app and get cash.
What’s in the Plan?
As per the Economic Times, NPCI (the body that runs the country’s retail payments system) has sought approval from the Reserve Bank of India (RBI) for this new feature.
A senior NPCI official said the plan is still under discussion and a final decision has not been made yet.
At present, cardless cash withdrawal through UPI is only possible at UPI-enabled ATMs or through a few select shopkeepers. Even there, a withdrawal limit applies:
In cities and towns: up to ₹1,000 per transaction
In rural areas: up to ₹2,000 per transaction
The new proposal aims to expand this facility to more than 20 lakh BC outlets across the country.
Who Are Business Correspondents (BCs)?
BCs are small centers or individuals who work as an extension of banks, especially in remote or underserved areas.
They help people access banking and financial services where no bank branch exists.
For reference, NPCI is the same organization that created and launched UPI back in 2016.
How Will It Work?
Here’s the simple process planned for UPI-based cash withdrawals at BC outlets:
The customer visits a BC outlet and scans the given QR code using any UPI app.
The withdrawal amount is debited from the customer’s bank account.
The same amount is credited to the BC’s account.
The BC then hands over the cash to the customer.
Current Options Available
At present, customers can withdraw money at BC outlets through micro-ATM machines using their debit/ATM cards. However, this method is not widely used.
