How to Withdraw Money from ATM ?

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When you need cash for daily expenses or an emergency, ATMs (Automated Teller Machines) save the day by eliminating the need to visit a bank branch. There are multiple ways to use an ATM for cash withdrawal; here’s a quick guide to walk you through the basics of how to withdraw money from an ATM.

What is an ATM?

An ATM is a kiosk-like machine designed to perform basic monetary transactions without any human intervention. Typically, a teller is a bank employee who handles these transactions, like depositing cash and cheques. 

However, ATMs have now automated these tasks, making them available 24×7 and speeding up the process without the need to visit a bank or wait in queue for your turn.

While these machines are mainly used for cash withdrawal, they can also perform several other tasks, such as: 

• Accepting cash or cheque deposits
• Activation of debit/credit cards
• Requesting a mini-statement
• Changing the PIN of your cards
• Making balance inquiries
• Transferring funds
• Applying for pre-approved loans for selected customers
• Creating a fixed deposit, etc. 

However, the availability of these services shall depend on the type of ATM and whether you are a customer of the bank that owns that ATM. For example, you would not be able to use your State Bank of India ATM cum debit card to make cash deposits at a Punjab National Bank ATM.

How to withdraw money from ATM?

There are several types of ATM cards: prepaid cards, which are loaded with a predetermined amount of money and can be used until the balance is used up; debit cards, which are directly linked to your bank account for purchases and withdrawals; and credit cards, which let you borrow money up to a certain limit for transactions. 

In addition, several banks have a unique feature called Green PIN, which allows a new card to be safely activated by generating a one-time PIN via ATM or mobile banking. To ensure safe and approved transactions, each of these cards needs a PIN for secure access.

Now, let us understand how to withdraw money from ATM. You just need to follow a few simple steps to withdraw cash from ATM: 

Step 1: Insert the ATM Card

The first step is to insert your ATM card into the card reader. You can use a debit card or a credit card for the same. 

Step 2: Choose a Language

The display screen will ask you to choose a language, which you can select using the keypad or by touching the display screen if the touch interface is supported. 

Step 3: Enter Your 4-Digit ATM PIN

Use the keypad or the touch interface to enter your card PIN. Make sure to enter the correct PIN because multiple wrong attempts may block your card.

Step 4: Select the Type of Transaction

The display screen will show multiple transaction options such as ‘Deposit,’ ‘Withdrawal,’ ‘Transfer,’ etc. Choose ‘Withdrawal.’

Step 5: Select Your Account Type

Depending on the card you are using for withdrawal, choose the account type associated with that card. Most individual bankers have savings accounts, as current accounts are for business transactions. 

Step 6: Enter Withdrawal Amount

Enter the amount you wish to withdraw and then press “Enter” on the keypad or touch interface. If there is no explicit “Enter” label on the keypad, you can hit the green button. 

Make sure the amount entered is a multiple of 100 or 500 (depending on the machine ) and less than your available balance, or the transaction will get cancelled.

Step 7: Collect Cash

If the machine has sufficient balance, the cash dispenser will fetch the cash for you to collect. 

Step 8: Get the Receipt if Needed

The display screen will now prompt you with an option to receive a printed receipt. Press ‘Yes’ if you would like a receipt. If you do not want one, the screen will display your balance and complete the transaction.

Step 9: Collect Your Card

The machine will release your card after a brief moment. Don’t forget to collect it. If you wish to perform another transaction, repeat the steps accordingly. However, the sequence of these steps may vary depending on the specific bank or ATM in use.

How to withdraw cash from UPI ATM?

Withdrawing cash from a UPI-enabled ATM is a straightforward process that enhances convenience and security.

Here is a step-by-step guide on how to take money from ATM without card.

1. Find an ATM that supports UPI withdrawals and click on “UPI Cash Withdrawal,” “ICCW,” or “Interoperable Cardless Cash Withdrawal.” 
2. The next step is to enter the amount you want to withdraw. 
3. Open the UPI app on your phone to scan the QR code that is visible on the screen. You have to scan it just like any other QR code scan for UPI transactions. 
4. To validate the UPI cash withdrawal, enter your UPI PIN on the phone.
5. If you use UPI for multiple bank accounts on the same app, it will ask you to choose the bank from which you want to withdraw.
6. Once you confirm the bank, the ATM will dispense the cash. Collect it and you are good to go!

This functionality uses the Unified Payment Interface (UPI) to enable customers to withdraw cash from ATMs without an ATM card. This method is also known as Interoperable Cardless Cash Withdrawal and uses QR codes for transactions. 

While more banks are adopting UPI cash withdrawals, the service is not yet available at all ATMs. Also, it is accessible only to users with a UPI-enabled app installed on their phone.

Withdrawal limits at an ATM

The cash withdrawal limit at an ATM is the maximum amount that you can withdraw using ATM transactions in a day. Depending on your account type, card, and bank, this limit may vary from ₹10,000 per day to ₹50,000 per day. 

Additionally, some banks also impose limits on the number of times you can make free monthly withdrawals. 

Things to Keep in Mind While Withdrawing Money From an ATM

Withdrawing cash from an ATM can sometimes present challenges such as:

• Card Problems: Successful transactions can be hindered by damaged, expired, or blocked cards.
• Network Connectivity: Transaction failures or delays may result from network interruptions or outages.
• ATM Malfunctions: The withdrawal procedure may be hampered by hardware or software problems with the ATM.
• Withdrawal Limits: Banks frequently set daily withdrawal caps, which limit the amount you can withdraw.
• Security Issues: The security of your account may be affected by ATM fraud, which includes card skimming and PIN theft.

With such a rising number of challenges, it is always best to take some safety precautions when it comes to withdraw cash from ATM. Here are some that you can follow:

1. The foremost rule is to never share your ATM PIN with others. 
2. Use an ATM with a security guard or security cameras for added safety. 
3. If you are stuck anywhere, contact your bank’s helpline number instead of asking strangers for help. 
4. If you suspect anything wrong, immediately cancel your transaction and inform the bank. 

Safety precautions when withdrawing cash from ATM

It is important to follow safety precautions when using ATMs. The key safety precautions when using an ATM are: 

• Never share your PIN with anyone.
• Use ATMs with security guards or cameras. 
• Contact your bank’s helpline if you’re in any trouble. 
• Immediately cancel the transaction and inform the bank if you suspect anything suspicious. 

Final Thoughts

The introduction of ATMs was a major step in extending banking services beyond the bank premises and operating hours. Knowing how to take money from ATM can fulfil your emergency needs anytime, anywhere, without the need to carry money with you. They are a quick and secure source of withdrawing or depositing cash at your own convenience, offering a seamless banking experience through a kiosk. 

Explore our finance courses for beginners now and learn essential skills to manage your money wisely!

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