In wake of increasing ATM transaction frauds, Bank of India (BoI) has come up with a new method, using which, customers can withdraw money from the ATM via UPI. BoI, in association with AGS Transact Technologies Ltd have come up with this system. Customers can use the QR code of BoI's UPI and the ATM to withdraw money, Livemint reported. This trasaction is limited to Rs 2,000 for now.
For now, this service is only available to Bank of India customers and at some ATMs. The customers will have to downnload the UPI app of the bank. After selecting the QR code option of withdrawl on the ATM screen, customers needs to select the amount and scan the QR code on the screen with UPI app scanner. The two pins — security pin to open the UPI app and UPI pin to transfer the money — keep the transaction secure. This also does away with the One time password business.
The QR code transaction is safer compared to ATM card transaction, because even if you lose your phobne, the security pin will be required to validate the transaction. If National Payments Corporation of India gives this a nod, then it can be rolled out universally.