2024-04-08 By Surbhi Chauhan UPI Payments

Exciting UPI Update: RBI Announces Cash Deposit Feature Coming to ATMs

The Reserve Bank of India (RBI) has unveiled an innovative advancement, allowing customers to effortlessly deposit cash into their bank accounts utilizing the Unified Payments Interface (UPI) at Cash Deposit Machines (CDMs). This ground-breaking feature, disclosed by RBI Governor Shaktikanta Das during the Monetary Policy Committee's policy announcement, signifies a major step towards modernizing banking services.

Traditionally, customers relied on debit cards for cash deposits through CDMs. However, with this latest development, the process has been streamlined, offering an alternative method for depositing cash seamlessly.

Understanding the details of cash deposit machines (CDMs) is crucial in grabbing this innovation. Functioning similar to ATMs, CDMs provide a convenient path for customers to deposit cash directly into their accounts. Unlike ATMs that hand out cash, CDMs are tailored to accept it. Equipped with slots for scanning debit cards and sensors for cash counting, these machines ensure a smooth transaction process. Customers can even deposit cash without a debit card by simply inputting their bank account number and registered mobile number.

Acknowledging the significance of CDMs in strengthening customer convenience and easing the burden of cash handling on bank branches, the RBI is poised to issue guidelines for UPI-based cash deposits shortly. This move underscores the central bank's commitment to fostering a digital-first banking ecosystem.

In a bid to further enhance digital payment methods, RBI Governor Shaktikanta Das also announced plans to extend UPI access to Prepaid Payment Instruments (PPIs) through third-party applications. Presently, UPI payments from PPIs are confined to the web or mobile apps provided by the PPI issuer. However, the proposed initiative will enable the utilization of third-party UPI apps, facilitating payments from PPI wallets. This strategic operation aims to augment customer convenience and promote digital transactions, particularly for small-value transactions.

Overall, these initiatives underscore the RBI's proactive stance in embracing technological advancements to bolster financial inclusivity and drive the nation towards a cash-lite economy.