Virtual ATM, Unified Payments Interface (UPI) is use now because people often don’t carry cash when they go out. You can make payments online with just a phone and internet.
But, many people don’t carry their debit or credit cards anymore because of UPI.
This can be inconvenient when you need cash urgently, especially while traveling or in remote places.
Paymart India, a Chandigarh-based fintech company, is changing cash withdrawals with its new Virtual ATM service.
Amit Narang, the Founder & CEO of Paymart India Pvt Ltd, name this service the “Virtual ATM.”
With Virtual ATMs, you can easily withdraw cash without the need for a physical card or visiting a traditional ATM.
Who can Use Virtual ATMs?
A Paymart release said that the virtual ATM service has successfully completed a 6-month pilot with IDBI Bank.
The Paymart has also collaborated with Indian Bank, Jammu & Kashmir Bank, and Karur Vysya Bank to introduce this service.
As of now, the virtual ATM service is available in select locations such as Chandigarh, Delhi, Hyderabad, Chennai, and Mumbai.
By March 2024, Paymart intends to initiate pilot programs with its partner banks for a gradual nationwide launch, aiming to achieve this objective by April or May 2024.
Paymart is also in advance discussions with 4 additional banks for further collaboration.
Pro and Cons of Virtual ATM
- No charges: You can avail this service without any additional charges, at least for the time being.
- Withdrawal limits: Transactions can range from a minimum of Rs 100 to a maximum of Rs 2,000 per transaction, with a monthly limit of Rs 10,000.
- Small cash withdrawals: Virtual ATMs are useful for obtaining small amounts of cash. As it may not be ideal for withdrawing large amount because the shopkeeper may not have sufficient cash in hand.
Benefits of Banks by Virtual ATM
Paymart highlights how this new ATM service benefits banks:
- Cost reduction: No need for installing and maintaining traditional ATMs, thereby reducing operational costs.
- Reduced footfall: Minimizes foot traffic in bank branches, particularly in remote areas.
- Revenue opportunities: Affiliated shopkeepers earn commissions on transactions, fostering business growth and customer engagement.
How to withdraw Cash using Virtual ATM?
- Need Smartphone and internet : Users require only a smartphone with internet connectivity to initiate a withdrawal.
- Mobile banking application: Use your mobile banking app to request a withdrawal from your bank. Ensure your phone number is register with the bank.
- OTP verification: After withdrawal request, your bank will generate a one-time password (OTP) and send it to your register mobile number.
- Collect Cash on nearby shop: Show the OTP to an affiliated shopkeeper listed in the mobile banking app to collect your cash.
Virtual ATM makes cash withdrawal easy, without needing debit cards or traditional ATMs.
Shopkeepers serve as virtual ATMs, making cash transactions convenient.
