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Scan & Withdraw: Soon, You May No Longer Need Debit Cards to Draw Cash From ATMs!

With this provision, you will soon be able to withdraw cash from an ATM using QR codes through the mobile application of your bank.

Following the historic demonetisation drive in 2016, the pace at which monetary transactions shifted to the digital mode in India was not just swift but also quite astounding!

Today, almost all of us will be quite familiar with the QR (Quick Response) code and have probably used this mode to enable payments at least once.

But did you know that soon, ATMs across the country will no longer be dependent only on debit cards and that you can withdraw money from them through the QR codes generated by your bank?

Yes, you read that right! Just the way you have probably made instant payments using QR codes through payment interfaces, and gateways like UPI, Paytm and Tez, ATMs will also have the same process incorporated in its money withdrawal mechanism soon enough.

As reported by Zee Business, you will be able to withdraw cash from an ATM using QR codes through the mobile application of your bank by choosing the cash withdrawal option and entering the required amount.

For representative purposes. Source: hps society.

At this point, the app will generate the QR code that will be scanned by the teller machine and, lo and behold, you will have your money in hand.

The best part about this new facility is that people can choose the currency notes that they would prefer to withdraw amongst the denominations of ₹100, ₹500 or ₹2,000 as well! Additionally, they can also avail demand drafts from ATMs instead of banks through this facility.

Alongside, upping the digital transaction game is India Post Payments Bank (IPPB), whose new mode of retail banking is not only hassle-free but also quite innovative. By launching ‘QR cards’ that work on the same scan-and-pay mechanism, IPPB intends to do away with the requirement of both ATM and debit cards and PIN-based system for cash and digital transactions.

For security reasons, this system would require either a biometric authentication or fingerprint scan from the customers. Interestingly, this provision also frees people from searching for ATMs.


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Instead, all they need to do is reach out to their post office, postman or Gramin Dak Sevak (GDS), who will then send their functionaries to the desired location and give the customer the required amount at the cost of ₹25 per transaction. As for digital transactions, a nominal fee of ₹15 would be charged, reports Live Mint.

Even here, the system is same. The QR card will be scanned by the postman or GDS, either at your home, post office or any other IPPB access point using a smartphone app or a QR code scanning machine. This way the risk that comes with forgetting the PIN or misuse of ATM cards can be easily ruled out, as all the postman will only need from you is your fingerprint!

Interestingly, IPPB is also planning bring the unorganised retail sector on board. This means, you would soon be able to purchase groceries at any local kirana shop using a QR card.

(Edited by Gayatri Mishra)

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Written by Lekshmi Priya S

Shuttling between existentialist views and Grey's Anatomy, Lekshmi has an insanely disturbing habit of binge reading. An ardent lover of animals and plants, she also specializes in cracking terribly sad jokes.