Withdrawing cash from a smartphone will be easier now. UPI (Unified Payments Interface), which is used everywhere in India to send money, pay bills, and shop online, can now also be used to take out cash. The National Payments Corporation of India (NPCI) is planning to start cash withdrawal using QR codes.
Many Business Correspondents (BCs), like grocery shopkeepers or small shops, will give QR codes. People can scan the code with any UPI app on their phone and get cash.
According to the Economic Times, NPCI, which runs India’s payment system, has asked the RBI for permission to let BCs give cash through UPI. A senior NPCI official said this plan is still being made, and the final decision is not done yet.
Cardless Cash Withdrawal Limits
As of today, cardless cash withdrawal through UPI is possible only at UPI-enabled ATMs or some selected shopkeepers. There is a limit too. In cities and towns, a person can get up to ₹1,000 per transaction. In rural areas, the limit is ₹2,000. Now, plans are being made to extend this facility to more than 20 lakh Business Correspondents (BCs) across the country.
Who Are BCs?
BCs are small centers or people who often live in remote or unbanked areas. They work as an extension of bank branches and help provide banking and financial services to people. NPCI created and launched UPI in 2016.
How It Will Work
The government and banks are working to make cash withdrawal easier through UPI. When a customer goes to a BC outlet, he will scan a QR code using a UPI app.
The amount will be taken from the customer’s account.
The same amount will be added to the BC’s account.
The BC will then give cash to the customer.
Current Options
Right now, customers can withdraw money from micro-ATM machines at BC outlets by inserting their ATM card. But this method is rarely used.