What NPCI enabled in October 2025
NPCI circular NPCI/UPI/OC-225/2025-26, dated 7 October 2025, enables cash withdrawal using UPI at business correspondent touchpoints such as Micro ATMs. The points below follow published summaries by Complinity and TeamLease RegTech:
- Dynamic QR only. The BC touchpoint shows a fresh dynamic QR for each withdrawal.
- Limits. ₹5,000 per transaction, ₹10,000 per day and ₹50,000 per month.
- Two-factor authentication on every transaction.
- Charges follow the same structure as card-and-PIN withdrawals at Micro ATMs.
- Onboarding. The acquiring bank onboards the business correspondents.
- Accounts. According to Complinity, UPI Lite and credit accounts can't be used.
Read the circular on npci.org.in and confirm the detail with your acquiring bank before you rely on it.
How a UPI cash withdrawal flows
The retailer enters the amount
The amount the customer wants, in steps of ₹100.
A dynamic QR appears
The platform shows a QR for this one withdrawal. It expires in about 60 seconds.
The customer approves
The customer scans the QR in their UPI app and approves with their UPI PIN.
The result is verified
The module confirms the payment through the provider's status API before it accepts the result.
Cash and credit
On a verified success, the retailer's wallet is credited under a unique reference, and the retailer hands over the cash.
What the module enforces
Two flows
A provider SDK flow inside the Android app, and a server-to-server flow in which the platform renders the dynamic QR itself.
Short-lived QR
Each rendered QR expires in about 60 seconds, so an old QR can't be paid later.
Limits
₹100 to ₹5,000 per transaction in steps of ₹100, with ₹10,000 per day and ₹50,000 per month per customer.
Blackout hours
No withdrawals overnight, from 11:30 PM to 5:00 AM by default. Admins can change the window.
Verified results
A provider callback is never trusted on its own. Every result is re-checked through the status API before any credit.
Merchant eligibility
UPI cash withdrawal reuses the merchant's AEPS onboarding and eKYC, and a daily job re-checks each merchant's eligibility.
The retailer's wallet credit uses a unique reference, so a repeated callback or a second status check can't credit the same withdrawal twice.
Ways to offer UPI cash withdrawal with Payonclick India
| Route | What it means | Status |
|---|---|---|
| White-label platform | UPI cash withdrawal inside your own branded portal and Android app, on your acquiring partner's contract | Available |
| Custom development | The module added to your existing software | Scoped per project |
| Payonclick partner UPI cash withdrawal API | Call Payonclick's UPI cash withdrawal from your servers | Not offered |
| Distributor account | Onboard retailers who offer UPI cash withdrawal on the Payonclick app | Available on payonclick.in |
Running it safely at the counter
- Cash only after the app says success. A customer's own phone screen is not proof. Hand over cash only when the retailer's app shows a verified success.
- Pending means wait. While a withdrawal is pending, the module keeps checking. The retailer shouldn't pay cash or start a new withdrawal for the same request.
- Explain declines. A customer near the daily or monthly cap will be declined. Tell retailers what the limits are, so they can explain it.
- Align the blackout window. Set the overnight window to match your acquiring bank's requirements.
Fake payment screenshots are a common fraud at cash counters. Train every retailer to trust only the verified status in their own app.
Getting started
Line up your acquiring partner
Sign with a bank or aggregator enabled for UPI cash withdrawal at BC touchpoints.
Scope the build
We map your partner's QR, status and settlement APIs onto the module.
Build and brand
Your portal and Android app, with limits and the blackout window set to your partner's rules.
Test and go live
Acceptance testing with your partner's credentials, then training and launch.