New UPI feature: Soon, you can deposit cash through UPI at ATMs, announces RBI

 


UPI cardless cash deposit will be similar to UPI cardless cash withdrawal, say many experts.

Synopsis

While announcing the decisions of the Monetary Policy Committee on April 5, 2024, RBI Governor Shaktikanta Das mentioned, "Deposit of cash through cash deposit machines (CDMs) is primarily being done through the use of debit cards. Given the experience gained from cardless cash withdrawal using UPI at the ATMs, it is now proposed to facilitate deposit of cash in CDMs using UPI." Customers can soon deposit cash at cash deposit machines (CDMs) at banks and ATMs through UPI app.

Unified Payments Interface (UPI) has become a part of our day-to-day life in the last few years. However, we mostly use it to transfer money or scan the QR code and pay at shops. But, the usage of UPI is just not limited to payments. Now, you can withdraw cash from ATMs using UPI. To make your lives even more convenient, the Reserve Bank of India (RBI) has now enabled a cash deposit facility through UPI at ATMs. Customers can soon deposit cash at cash deposit machines (CDMs) at banks and ATMs through UPI app, announces the central bank.

Cash deposit at ATMs through UPI: What is the new announcement by RBI?

While announcing the decisions of the Monetary Policy Committee on April 5, 2024, RBI Governor Shaktikanta Das mentioned, "Deposit of cash through cash deposit machines (CDMs) is primarily being done through the use of debit cards. Given the experience gained from cardless cash withdrawal using UPI at the ATMs, it is now proposed to facilitate deposit of cash in CDMs using UPI."

"Cash Deposit Machines (CDMs) deployed by banks enhance customer convenience while reducing the cash-handling load on bank branches. The facility of cash deposit is presently available only through the use of debit cards. Given the popularity and acceptance of UPI, as well as the benefits seen from the availability of UPI for cardless cash withdrawals at ATMs, it is now proposed to facilitate a cash deposit facility through
the use of UPI. Operational instructions will be issued shortly," stated Statement on Developmental and Regulatory Policies of RBI.

Cash deposit at ATMs using UPI: How will it work?

At present, you can withdraw cash at ATMs through UPI. The process is quite simple.

Invest and Earn on ET Money - Get up to 9.5% p.a. returns

First, you need to find a UPI-enabled to withdraw cash from an ATM using a UPI application. Several banks offer cash withdrawals through UPI at ATMs. All you need to do is to select the ‘UPI Withdrawal’ option on the ATM screen. Then, you will be prompted to enter the amount you want to withdraw. After entering the amount, a single-use dynamic QR code will be displayed on the screen. You have to scan the QR code through your UPI app. In the next step, your UPI app will prompt you to make the payment for the equivalent withdrawal amount. You have to select the linked bank account and authorize the transaction with the UPI PIN. Once the transaction is authorised, you will get your cash from the ATM.
UPI cardless cash deposit will be similar to UPI cardless cash withdrawal, say many experts. At present, you can deposit cash at cash deposit machines through primarily using your debit card, be it in banks or ATMs. With the announcement of UPI cardless cash deposit, you no longer need to carry a debit card to deposit cash at cash deposit machines at ATMs.

How will cardless cash deposit through UPI help customers?

Shaktikanta Das said, "This measure will further enhance customer's convenience and make the currency handling process easier for banks." Vivek Iyer, Partner, Grant Thornton Bharat, said, "Enabling UPI for cash deposit is the RBI focus towards integrating UPI as a part of the entire financial services value chain, given the positive level of customer experience and ease that UPI has been known for."

RBI will issue operational instructions for this facility soon.



Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the ...
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the I...
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5...
Read more