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UPI Cash Withdrawal at Business Correspondents: NPCI Plan

16 September 20251 min read
BANKING & FINANCEUPI Cash Withdrawalat BusinessCorrespondents:NPCI Plan16 September 2025safalsetu.com

Why in the news

NPCI wants UPI cardless cash-out to go beyond ATMs and a few merchants, helping underbanked and rural areas.

Key facts

  • Today: only UPI-enabled ATMs and some merchants (₹1,000 per transaction urban, ₹2,000 rural).
  • Plan: reach over 2 million Business Correspondents (BCs), with up to ₹10,000 per transaction, like micro-ATMs.
  • Method: scan the BC outlet’s QR code; customer debited and BC credited instantly.
  • Complements Aadhaar-enabled biometric withdrawal and micro-ATMs.

About BCs

Bank-appointed agents offering basic banking where branches are scarce, mainly rural and semi-urban.

Exam angle

  • Body: NPCI; network size: 2 million+ BCs.

Test yourself

1. Which body plans to extend UPI cash withdrawal to Business Correspondents?

NPCI is planning the extension.

2. Proposed UPI withdrawal limit per transaction at Business Correspondents is up to:

The notes say up to ₹10,000, like micro-ATMs.

3. How would a customer withdraw cash at a BC outlet under the plan?

The user scans the BC's QR code with any UPI app.