ATMs may soon issue RuPay cards instantly, cutting branch visits and delivery wait; check details

Customers may no longer have to visit a bank branch or wait for a physical card to arrive by post, with a new ATM solution allowing banks to issue personalised RuPay cards instantly. The initiative is part of three financial inclusion measures unveiled by the Department of Financial Services (DFS) at the Global Fintech Fest 2026 in Mumbai.

The new open-source Android-based ATM solution is designed to enable customers to receive personalised RuPay debit, credit and National Common Mobility Cards (NCMC) directly from the machine. The technology could make card issuance faster while reducing dependence on conventional branch-based processes and physical delivery.

ATMs move beyond cash withdrawals

The proposed machines are designed to function as more than traditional cash points. Along with instant card issuance, they can provide merchants with UPI QR codes to accept digital payments.

The ATMs are also being developed to support services such as cheque deposits, account opening and loan applications. This could allow banks to use the machines as broader digital banking touchpoints, particularly in locations where establishing or operating a full-service branch may be less practical.

Banks are also exploring their deployment as Digital Banking Units and at high-footfall locations such as airports, transit hubs, campuses and corporate parks.

The immediate issuance of cards could address a common friction point in banking: the time between opening an account or applying for a card and actually receiving the physical instrument. By producing the card at the point of service, customers could potentially begin using their banking facilities sooner.

Nine banks assess the solution

The initiative is currently at the evaluation stage, with nine banks engaging with the National Payments Corporation of India (NPCI) and ATM manufacturers to assess the solution.

The participating banks are State Bank of India, Bank of Baroda, Union Bank of India, Punjab National Bank, Bank of India, Central Bank of India, UCO Bank, Slice Small Finance Bank and Airtel Payments Bank.

The involvement of both large public-sector banks and private payments-focused institutions could help test how the solution works across different banking models and customer segments.

The initiative also reflects a broader shift in India's banking infrastructure, where physical touchpoints are increasingly being integrated with digital services. Instead of serving primarily as cash withdrawal and deposit points, next-generation ATMs could become access points for cards, payments and other banking services.

If deployed at scale, instant card issuance could make customer onboarding more convenient while extending banking services to high-footfall and underserved locations. For banks, it could also offer an alternative delivery channel as customers increasingly expect faster, self-service access to financial products.