Hitachi launches India’s first UPI enabled ATM

Hitachi Payment Services , a subsidiary company of Hitachi Limited of Japan has launched India’s first ever UPI-ATM in collaboration with National Payment Corporation of India (NPCI). The Hitachi ATM (Automated Teller Machine) named Hitachi Money Spot UPI ATM is a White Label ATM (WLA).

Feature of the UPI- ATM 

The ATM will offer cardless cash withdrawal and there will be no need to use ATM cards and PIN.  Money can be withdrawn from such a type of ATM using the Unified Payment Interface (UPI) app. 

The customer needs to have an Android smartphone with a UPI app installed. The UPI app needs to be linked with the customer's bank account. The customer has to select the ‘UPI cash  withdrawal’ option in the ATM and scan the QR (Quick Response) code displayed on the screen of the ATM.After authentication by the bank in which the customer has a bank account the customer can withdraw the money .

White Label ATM is considered as another bank ATM  for a bank customer and the daily cash withdrawal limit is Rs 10,000.

Automated Teller Machine (ATM)

Automated Teller Machine (ATM) is a computerised machine which provides financial and non financial services to a bank customer. The  bank account holder can withdraw or deposit cash in his account or perform non-financial transactions like requesting a cheque book, checking account balance ,payment of bills etc. 

The ATM can be accessed through a ATM cum Debit card issued by the banks or through a linked UPI app . 

Types of ATM on the basis of ownership and operations  

Banks ATM

Banks which are licensed by the Reserve Bank of India can set up their own ATM. It carries the name of the concerned banks and its logo. The operation of the ATM is managed solely by the Bank concerned. 

Brown Label ATM 

Brown Label ATMs are those ATMs which is setup by a bank in partnership with a company . The partner company will install and own the ATM machines while the cash management and connectivity  to the ATM is provided by the banks. The ATM will carry the name  and logo of the bank .

Brown ATMs are set up by banks to reduce the cost of setting  and operating an ATM machine . In Brown ATM the cost of setting and operating of ATM is shared by the Banks and the company.

White Label ATM (WLAs)

• White Label ATMs (WLAs) are set up owned and operated by non banking companies in India . The non banking company which wants to set up white label ATM shall have a minimum net worth of Rs 100 crore .
• RBI provides licence to the White Label ATM operator under the Payment and Settlement Act 2007.
• The main motive for permitting the WLA was to increase the penetration of the ATMs in smaller town and semi-urban areas and to further financial inclusion
• The WLAs perform almost all the functions performed by a bank's ATM and the customers of the ATM are treated as other banks' customers .

White Label ATM Operators in India 

At present there are four White Label ATM operators in India ,licensed by RBI . 

1. Tata Communications Payment Solutions Limited. It was the first company to be licensed by RBI (3 May 2013). It operates under the  brand name Indicash.It started its operation in 2013 and at present is the largest White Label ATM in the country . It is based in Mumbai.
2. Hitachi Payment Service limited . It was the second company to be licensed by RBI (25 November 2013) It is a company based in Mumbai and operates its ATM under Hitachi Money Spot ATM.
3. Vakrangee Limited. It operates its ATM under the brand name Vakrangee . It is a Mumbai based company.
4. India1 Payments Limited (formerly BTI Payments Pvt. Limited). It is a Bengaluru based company which operates its ATM under the brand name India1.

Unified Payment Interface (UPI) 

The Unified Payment Interface (UPI) has been developed by NPCI and went live in 2016. It is a mobile based 24x7 fast payment system to send and receive funds instantly using a Virtual Payment Address (VPA) set by the user itself.

UPI facilitates immediate money transfer , QR code (scan and pay) based payments, merchant payments, utility bill payments, etc. 

National Payments Corporation of India (NPCI)

• NPCI, an umbrella organisation for operating retail payment and settlement systems in India under the 'Payment and Settlement Systems Act, 2007'.
• It was set up in 2008.
• It is owned by a consortium of commercial banks .

NPCI Headquarters : Mumbai

Chief Executive Officer : Dilip Asbe