Exploring Cardless Cash Withdrawals in India via UPI Applications

In a significant advancement for digital banking, several Indian banks have launched cardless cash withdrawal services that enable users to access funds from ATMs without needing a physical debit card. This innovation, which leverages Unified Payments Interface (UPI) technology, is rapidly gaining traction across the country.

As of July 2025, banks such as the State Bank of India (SBI), ICICI Bank, and HDFC Bank have introduced features that allow customers to withdraw cash using mobile applications like YONO, iMobile, and Google Pay. To utilize this service, users visit a UPI-enabled ATM, select the cardless cash withdrawal option, and scan a mutable QR code displayed on the ATM screen using their UPI app. After entering the desired withdrawal amount and authenticating the transaction with their UPI PIN, users receive cash immediately. This method enhances convenience and security by mitigating risks associated with physical debit cards, such as card theft or fraud.

The Reserve Bank of India (RBI) has encouraged banks to adopt Interoperable Cardless Cash Withdrawal (ICCW), allowing customers to use any compatible UPI app at participating ATMs. SBI, for instance, enhances this experience with a six-digit YONO Cash code, permitting faster access to funds at ATMs. Notably, the transaction limit for UPI ATM withdrawals is capped at ₹10,000 per transaction, adhering to the daily withdrawal limits established by individual banks.

Currently, over 30 banks and financial institutions support this innovative feature, including prominent entities like Union Bank and IndusInd Bank. Experts suggest that cardless cash withdrawal is on the verge of becoming a standard banking solution throughout India, transforming the way consumers interact with their financial institutions.

Dr. Anil Kumar, a financial technology expert at the Indian Institute of Technology (IIT) Delhi, emphasizes the significance of this development. "The integration of UPI technology into ATM services not only modernizes cash withdrawals but also aligns with the government's push for a cashless economy," he stated.

The RBI's push for digital banking solutions is part of a broader initiative to promote financial inclusion and enhance the efficiency of banking transactions. According to the RBI’s 2023 report on digital payment trends, UPI transactions accounted for over ₹1 trillion in monthly transactions, highlighting the growing reliance on digital platforms for financial activities (Reserve Bank of India, 2023).

While the advantages of cardless cash withdrawals are clear, some experts caution against potential security issues. Dr. Ramesh Gupta, a cybersecurity researcher at the National Institute of Technology (NIT) Suratkal, warns, "With increased digital transactions, there is a heightened risk of cyber fraud. Continuous monitoring and robust security measures are essential to protect users."

The recent move towards cashless transactions is not unique to India. In neighboring Pakistan, Prime Minister Muhammad Shehbaz Sharif recently established a high-level committee to foster a cashless economy and expedite digitization initiatives, underscoring a regional trend towards embracing digital financial solutions.

As cardless cash withdrawal services gain popularity in India, they signify a transformative shift in banking convenience and security. The ongoing evolution of digital payments in the country may set a precedent for similar developments in other regions, with implications for both local economies and the global banking landscape. The future of banking appears to be firmly rooted in digital innovation, with cardless cash withdrawals at the forefront of this revolution.