UPI Cash! Soon You may be able to Withdraw Cash from BC Outlets via UPI

Pradeep Singh

1 week ago

NPCI Seeks RBI Nod for UPI-Based Cash Withdrawals at 2 Million BC Outlets

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You may soon withdraw cash through UPI (Unified Payments Interface) at BC Outlets in India. According to a report in The Economic Times, the National Payments Corporation of India (NPCI) has approached the Reserve Bank of India (RBI) seeking approval to allow UPI-based cash withdrawals at more than two million Business Correspondent (BC) outlets across the country.

Right now, UPI-based cash withdrawals are available only at some ATMs and a small group of merchants.

The current withdrawal limit is ₹1,000 per transaction in towns and cities and ₹2,000 in rural areas.

The New Proposal

Under the proposed system, Business Correspondents (BCs) will be able to disburse up to ₹10,000 per transaction. This means that you can easily withdraw cash without need of any ATM Card or using any biometric device.

Who Are Business Correspondents (BCs)?

BCs are local representatives who act as an extended arm of banks, especially in areas where branches and ATMs are scarce. They can be:

Shopkeepers,
Non-profit organisations, or
Individuals.

Currently, BCs help customers withdraw cash using debit cards or Aadhaar-based biometric authentication. With the new proposal, they could also use UPI QR codes.

How will it Work?

The customer will scan the UPI QR code displayed by the BC.
They will authorise the transaction using their UPI app.
The BC will provide the money.

This method would be helpful for people who face problems with fingerprint authentication or prefer not to carry debit cards.

UPI’s Rapid Growth

UPI has become the backbone of India’s digital payment system:

It handles about 85% of all digital payments in India.
It makes up nearly half of global real-time transactions.
On August 2, daily transactions hit a record 707 million.
In July 2025, UPI processed 19.5 billion transactions worth ₹25 trillion.

The government has set an ambitious goal of reaching 1 billion daily transactions, which NPCI believes is achievable by next year at the current growth rate.