UPI Cash Withdrawal at Business Correspondents: NPCI Plan

16 September 20251 min read

Why in the news

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

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.

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

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.

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