India’s ATMs are evolving rapidly to ensure uninterrupted service amid power challenges. Combining Uninterrupted Power Supply (UPS) technology with NPCI’s Interoperable Cardless Cash Withdrawal (ICCW)—UPI-based ATM withdrawals—banks now offer cardless cash access even during blackouts. Launched in 2020 and scaled by 2025, ICCW lets users withdraw via apps like Google Pay, PhonePe, Paytm, or BHIM, scanning dynamic QR codes on UPS-backed ATMs.
RBI’s 2025 digital payments directive mandates 4-8 hour UPS backups (urban/rural), enabling over 2.5 lakh ATMs to stay operational. This duo tackles outages in high-impact states like Uttar Pradesh, Bihar, and Karnataka, boosting financial inclusion.
Step-by-Step: Withdrawing Cash via UPI at a UPS ATM
ICCW simplifies cardless access—here’s how it works on a powered-up machine:
- Locate Enabled ATM: Spot “UPI Cash Withdrawal” or “ICCW” signage.
- Select Option: Choose “UPI Cardless Cash” on screen.
- Enter Amount: Input up to ₹10,000 (max per transaction).
- Scan Dynamic QR: Use your UPI app to scan the single-use code displayed.
- Authorize Securely: Select bank account, enter UPI PIN for two-factor approval.
- Dispense Cash: ATM releases funds instantly; queued if offline, synced later.
During a power cut, UPS keeps the QR generator and dispenser running flawlessly.
Tech Synergy: UPS Meets ICCW Features and Limits
UPS enhances ICCW’s strengths:
- Key Safeguards: Dynamic QR + UPI PIN prevents skimming; interoperable across banks (SBI, ICICI, PNB).
- Limits: ₹10,000/transaction; up to ₹20,000/day (2 txns, bank-specific).
- No Extra Cost: Fee-free in most cases; standard ATM charges may apply.
- UPS Backbone: Lithium-ion batteries (10-20 kWh) from APC/Schneider provide 4-12 hours backup, with IoT alerts.
| Bank/Network | UPS ATMs (2026) | ICCW Support | Backup Hours |
| SBI | 45,000 | Full | 6-10 |
| HDFC/ICICI | 30,000+ | Full | 4-8 |
| Others (BoB, PNB) | 25,000 | Growing | 8+ Solar |
Pilots in Bengaluru showed 200+ ICCW txns on UPS during 6-hour outages.
Benefits, Adoption, and Roadblocks
Gains for All:
- Customers: Cardless security, 35% uptime boost, ideal for PMJDY users.
- Banks: 40% lower downtime costs; +22% UPI growth (RBI stats).
- Economy: Supports Digital India in outage-prone areas.
Challenges: ₹7-15 lakh install costs; battery maintenance. RBI subsidies aid rollout.
Future Outlook: AI outage prediction, 30% solar-UPS by 2028, 80% coverage target. This fusion positions India as a global fintech benchmark.
