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.

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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.



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