Excelsior Correspondent
JAMMU, Feb 23: In a major step towards enhancing financial inclusion and convenience, Chandigarh-based fintech startup Paymart India Pvt Ltd today partnered with several banks, including Jammu & Kashmir Bank, to provide Virtual ATM services across the country.
The initiative aims to eliminate the need for customers to visit physical ATMs or bank branches for cash withdrawals.
The move comes amid rising maintenance costs of traditional ATMs, limited penetration in rural areas and a significant surge in digital transactions.
Virtual ATMs allow bank customers to initiate a cash withdrawal request through their respective bank’s mobile banking app.
The app generates a One-Time Password (OTP), which can then be redeemed at a nearby registered merchant outlet such as kirana stores or Common Service Centres (CSCs).
This cardless system reduces dependency on physical ATM infrastructure and debit cards.
Currently, Virtual ATM services are available at approximately 6.5 lakh locations across India.
In the Jammu & Kashmir region alone, customers can access the facility at over 3,500 locations, significantly improving cash accessibility in semi-urban and rural areas.
Highlighting the innovation, Amit Narang, Founder of Paymart India, said, “Globally, the world is moving from hardware to smartphones and Paymart is a pioneer in effecting cardless and hardware-free transactions in India.”
The benefits of Virtual ATMs include increased convenience, no need to carry physical cards, reduced risk of card skimming, and lower operational costs for both banks and customers.
Meanwhile, a recent report by the State Bank of India (SBI) has noted that cash in circulation in India has reached a record high despite the explosive growth of UPI and other digital payment platforms.
The report indicates that while digital payments are rapidly expanding, they are growing alongside cash usage rather than replacing it in India’s fast-growing economy.
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