
The Reserve Bank of India (RBI) has introduced a new feature that enables customers to deposit cash into their bank accounts using the Unified Payments Interface (UPI) at cash deposit machines (CDMs). This announcement was made by RBI Governor Shaktikanta Das during the Monetary Policy Committee’s policy announcement.
Previously, customers primarily used debit cards to deposit cash through CDMs. However, with the new UPI feature, customers can now conveniently deposit cash directly into their accounts.
How Cash Deposit Machines Work
CDMs function similarly to ATMs, allowing customers to deposit cash directly into their accounts. Unlike ATMs that dispense cash, CDMs accept cash deposits. The machine is equipped with a slot to scan the debit card and another slot to count the deposited cash using sensors. Once the deposited amount is confirmed, it is transferred to the customer’s bank account. Even without a debit card, customers can still deposit cash by entering their bank account number and registered mobile number.
How to deposit cash using in ATM using UPI?
The new UPI-based cash deposit system is expected to function similarly to the current withdrawal system. To use the new UPI-based cash deposit system, follow these steps:
- Select “UPI Cardless Cash”: On the ATM screen, choose the “UPI Cardless Cash” option to initiate the cardless deposit process.
- Choose the Amount: After selecting the “UPI Cardless Cash” option, pick the desired amount for deposit.
- Scan the QR Code: Use a UPI app installed on your smartphone to scan the QR code displayed on the ATM screen.
- Confirm with UPI PIN: Validate the UPI cash deposit by confirming the transaction with your UPI PIN.
- Collect the Cash: After completing the above steps, you can collect the deposited cash.
This new system is designed to enhance ease of transactions and eliminate frauds, providing a convenient and secure way for customers to access their funds.
Benefits of Cash Deposit Machines
The RBI recognizes the importance of CDMs in enhancing customer convenience and reducing the burden of cash-handling on bank branches. By allowing customers to deposit cash using UPI, the RBI aims to further streamline the deposit process and promote digital transactions.
Guidelines for implementing the UPI facility on CDMs are expected to be issued shortly, providing more details on how customers can take advantage of this new feature.
UPI Access for Prepaid Payment Instruments (PPIs)
In addition to the UPI feature for CDMs, Governor Shaktikanta Das also announced plans to enable UPI access for Prepaid Payment Instruments (PPIs) through third-party apps. Currently, UPI payments from PPIs can only be made using the web or mobile app provided by the PPI issuer.
The proposed change will allow customers to use third-party UPI apps to make payments directly from their PPI wallets. This change aims to enhance customer convenience and promote digital payments for small-value transactions.
These developments demonstrate the RBI’s commitment to leveraging technology to provide customers with more convenient and secure banking services.