UPI QR code withdrawals: Cash access without cards or biometrics | Fusion - WeRIndia

India’s digital payment revolution is reshaping how people access and manage money.

With UPI leading this transformation, a new feature may soon make cash withdrawals easier, using QR codes instead of cards or biometric scans.

The National Payments Corporation of India (NPCI) has proposed a new system to the Reserve Bank of India (RBI).

It aims to enable cash withdrawals through UPI at Business Correspondent (BC) outlets by simply scanning a QR code.

These BCs act as micro-branches of banks and are spread across rural and remote areas. If approved, this facility could reach over 20 lakh BCs across the country.

Currently, UPI-based cash withdrawal is available only through select ATMs and a few retail outlets. There are also withdrawal limits, ₹1,000 in urban areas and ₹2,000 in rural regions.

The proposed system would allow users to withdraw up to ₹10,000 per transaction, with a mandatory 30-minute gap between transactions.

The biggest advantage is convenience. Users won’t need ATM cards or Aadhaar-based fingerprint authentication, which often fails due to connectivity issues or biometric errors.

In areas where traditional banking infrastructure is weak, this could be a game-changer. People would only need a mobile phone, a UPI app, and access to a BC outlet.

However, this shift brings security concerns. Cybercrime experts have pointed out the risk of fraud.

In previous cases, stolen funds were funnelled through BC networks, triggering investigations and service disruptions.

Therefore, strong verification protocols and secure transaction systems will be essential for smooth implementation.

If done right, this system can significantly improve access to cash, especially for those who face hurdles using cards or biometric devices.

It also aligns with India’s broader goal of financial inclusion, ensuring more people can access banking services without relying on physical infrastructure.

UPI-powered QR code cash withdrawals could soon let users access money anytime, anywhere, no cards, no fingerprints, just a simple scan.

This innovation has the potential to redefine rural banking and strengthen India’s digital economy.

Image Credit: NPCI, CC BY-SA 4.0, via Wikimedia Commons

Source: http://www.npci.org.in/Brand-centre.aspx

Image Reference: https://commons.wikimedia.org/wiki/File:UPI-Logo.png