The National Payments Corporation of India (NPCI) is preparing to make UPI work like an ATM, allowing users to withdraw up to ₹10,000 in cash through business correspondents (BCs) across India.
The new system will use QR codes for withdrawals. Users can simply open their UPI app, scan the QR code provided by a business correspondent, authorize the transaction, and get instant cash — just like any other UPI payment. The amount will be deducted directly from their bank account.
With more than 20 lakh BC agents operating across the country, this move aims to make cash access easier, especially in rural and semi-urban areas where banks and ATMs are limited.
Currently, only select ATMs and merchants support UPI withdrawals, capped at ₹1,000 in cities and ₹2,000 in rural areas. Under the proposed system, the limit will rise significantly to ₹10,000 per transaction.
However, experts warn of possible fraud risks, cautioning that widespread QR-based withdrawals could make users more vulnerable to scams. NPCI has already sought approval from the Reserve Bank of India (RBI) for the rollout.
