The UPI cash withdrawal limit at a shop or Micro ATM is ₹5,000 per transaction, ₹10,000 per day and ₹50,000 per month, with two-factor authentication on every withdrawal. NPCI set these limits in circular NPCI/UPI/OC-225/2025-26 of 7 October 2025. In the Payonclick app, each withdrawal can be ₹100 to ₹5,000, in multiples of ₹100, and the service is not available between 11:30 PM and 5:00 AM.
This guide covers how the service works at the counter, where each limit comes from, and what to check before you hand over cash.
What UPI cash withdrawal at a shop is
UPI (Unified Payments Interface) is NPCI's system for paying from a bank account through a mobile app. UPI cash withdrawal uses it at a shop counter: the customer approves a UPI payment from their bank account, and once it succeeds you hand them that amount in cash.
The service runs at Business Correspondent (BC) touch points. A BC is an agent, such as a local shop, through which a bank offers basic banking services outside its branches. Until this circular, a customer could withdraw cash at a BC in two ways: a debit card and PIN on a Micro ATM, or Aadhaar authentication through AEPS (Aadhaar Enabled Payment System). NPCI added a third way, where the customer scans a dynamic UPI QR code shown by the BC, using any UPI app.
NPCI introduced the service in October 2025. It adds to AEPS and card-based withdrawals rather than replacing them. It is also different from withdrawing cash with UPI at a bank ATM: here the shop hands over the cash, not a machine.
NPCI's formal name for the service is "cash withdrawal through MicroATM using UPI at Business Correspondent (BC) touch points". That is why people also search for UPI cash withdrawal at a Micro ATM. In the Payonclick app, the QR code appears in the app itself, so the customer needs no card and gives no fingerprint.
UPI cash withdrawal has been live in the Payonclick app since August 2026. To offer it through our UPI cash withdrawal service for retailers, you first complete AEPS merchant onboarding and eKYC.
Payonclick India is a technology and service provider, not a bank. The withdrawal itself runs through the customer's bank and NPCI's UPI network. Under the NPCI circular, the acquiring bank is responsible for onboarding the BC touch points that offer this service.
How the dynamic QR flow works
At the counter, a UPI cash withdrawal in the Payonclick app takes four steps:
Enter the details
Type the amount and the customer's mobile number. The amount must be ₹100 to ₹5,000, in multiples of ₹100, and the mobile number is mandatory.
Show the QR code
The app shows a dynamic UPI QR code for this withdrawal. It stays valid for about a minute.
Customer approves
The customer scans the code with any UPI app on their own phone and approves the payment with their UPI PIN.
Hand over the cash
Give the cash only after the payment succeeds in the Payonclick app.
A dynamic QR code is created fresh for one transaction. It is different from the static QR code many shops print and stick on the counter to receive payments. The NPCI circular allows these withdrawals only through a dynamic UPI QR, so a printed shop QR cannot be used for cash withdrawal.
The customer needs three things: a phone with a UPI app, a bank account linked to UPI, and their UPI PIN. The circular excludes two kinds of account: UPI Lite, and any account that is credit in nature, such as a credit card linked to UPI.
Official UPI cash withdrawal limits: per transaction, per day, per month
NPCI's circular NPCI/UPI/OC-225/2025-26 is addressed to all banks, payment service providers and third-party apps in UPI. It sets these rules for cash withdrawal using UPI at BC touch points:
| Rule | What the circular says |
|---|---|
| Per transaction | Up to ₹5,000 |
| Per day | Up to ₹10,000 |
| Per month | Up to ₹50,000 |
| Authentication | Two-factor authentication on every transaction |
| QR code | Dynamic UPI QR only |
| Accounts not allowed | UPI Lite, and accounts that are credit in nature |
| Failed transactions | Members follow RBI's 2019 framework on turnaround time and customer compensation |
| Disputes | Online dispute resolution is available; dispute handling is similar to AEPS |
A few things follow from these rules. Even at the full ₹5,000 each time, a customer reaches the daily limit after two withdrawals. The circular also lets banks treat these withdrawals like AEPS cash withdrawals for their business and risk rules, so a bank's own checks can apply.
The circular does not tie the daily and monthly limits to one shop. If a withdrawal within ₹5,000 is declined, the customer may already have used up a daily or monthly limit, or their bank may have declined it for another reason. Either way, no cash changes hands.
Limits and hours in the Payonclick app
The app adds its own checks to the NPCI rules. This table puts them side by side:
| Item | In the Payonclick app | NPCI circular |
|---|---|---|
| Amount per withdrawal | ₹100 to ₹5,000 | Up to ₹5,000 |
| Amount steps | Multiples of ₹100 | Not in the circular |
| Per day and per month | NPCI limits apply | ₹10,000 per day, ₹50,000 per month |
| Customer's mobile number | Mandatory | Not in the circular |
| Hours | Not available from 11:30 PM to 5:00 AM | Not in the circular |
| QR code | Dynamic, valid for about a minute | Dynamic QR only |
| Customer approval | UPI PIN in the customer's own UPI app | Two-factor authentication |
| Who can offer it | Retailers who have completed AEPS merchant onboarding and eKYC | BCs onboarded by the acquiring bank |
| Customer's UPI ID in your history | Masked | Not in the circular |
Plan for the night window. Between 11:30 PM and 5:00 AM the app does not offer UPI cash withdrawal, so if your shop stays open late, tell regular customers in advance rather than turning them away at the counter.
The customer's mobile number must be entered for every withdrawal, and their UPI ID is masked in your transaction history to protect their details. Current limits for every service, with their sources, are on our rules and limits page.
Why the QR expires and other safety checks
The QR code stays valid for about a minute. That short life keeps each code tied to the one withdrawal you just entered, so an expired code cannot be used later, even from a photo. If the minute runs out before the customer approves, do not hand over cash. Start a new withdrawal and show a fresh code.
Hand over cash only when the Payonclick app shows the withdrawal as successful. Do not rely on the customer's phone screen, a screenshot or an SMS they show you. If the status is failed or not yet confirmed, do not give cash.
Other checks at the counter:
- Let the customer approve on their own phone. Never ask for their UPI PIN, and never enter it for them.
- Confirm the amount first. The QR code is created for the amount you enter, so read it back to the customer before you show the code.
- Protect your own account. Payonclick staff never ask for your OTP, TPIN, password or a remote fingerprint scan.
If a customer says money left their account but the withdrawal did not succeed, do not pay cash to settle it. The NPCI circular requires members to follow RBI's framework on turnaround time and compensation for failed transactions of 20 September 2019, and online dispute resolution is available for these transactions. Ask the customer to contact their bank or UPI app, and raise a ticket with us in the portal or app so our team can check the transaction.
UPI vs AEPS vs debit card cash-out
UPI is one of three ways a customer can take cash at a BC shop, and each suits a different customer:
| UPI cash withdrawal | AEPS | Micro ATM (debit card) | |
|---|---|---|---|
| Customer approves with | UPI PIN in their own UPI app | Aadhaar number and fingerprint or iris | Debit card and card PIN |
| Per withdrawal in the Payonclick app | ₹100 to ₹5,000 | ₹100 to ₹10,000 | ₹100 to ₹10,000 |
| Extra device at your shop | None; the QR shows in the app | Certified RD biometric device | Bluetooth Micro ATM device |
For a customer who needs more than ₹5,000 at once, AEPS and Micro ATM allow a larger single withdrawal in the app, subject to their bank's limits. For a fuller side-by-side view, including what can go wrong with each, read AEPS vs Micro ATM vs UPI cash withdrawal.