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Why Banks are preferring UPI for ATM cash withdrawal instead of traditional Cards No Physical Card Production: Issuing debit cards costs banks money (around Rs 150-200 per card for production, shipping, and activation). UPI eliminates this by working entirely through mobile apps, so there's no need for physical cards. No Card Maintenance: Over the lifetime of a debit card (typically 5-7 years), banks spend additional money on maintaining the card's infrastructure, such as replacing lost cards or supporting features like NFC. UPI transactions only require mobile apps, drastically reducing these operational costs. Cheaper ATM Infrastructure: With UPI-enabled ATMs, there's no need for expensive card readers and PIN pads. Instead, you just need a QR code scanner, which reduces the cost of building and maintaining ATMs.