On August 29, 2024, the Reserve Bank of India (RBI) introduced a significant advancement in banking technology at the Global Fintech Fest (GFF) 2024. The Deputy Governor of RBI, T Rabi Sankar, unveiled the UPI interoperable cash deposit (UPI-ICD) facility. This new feature allows customers to deposit cash at ATMs using their Unified Payments Interface (UPI) apps, which can be credited to their bank account or any other bank account without the need for a physical debit card.
How Does the UPI Interoperable Cash Deposit Facility Work?
The National Payments Corporation of India (NPCI) released a statement explaining how this new feature works. Essentially, customers will now be able to use ATMs, specifically Cash Deposit Machines (CDMs), to deposit money into their bank accounts via UPI. This process does not require a physical card, making it more convenient and accessible.
CDMs are special machines that can handle both cash deposits and withdrawals. To deposit cash, customers will use their UPI-enabled mobile number, virtual payment address (VPA), or the account’s IFSC code. This makes the cash deposit process more streamlined and inclusive, allowing customers from various financial backgrounds to benefit.
Benefits of UPI Cardless Cash Deposits
Currently, when you want to deposit cash at an ATM, you typically need to use a debit card. With the introduction of UPI-ICD, the need for a debit card is eliminated. This new feature is expected to function similarly to the existing UPI cardless cash withdrawal, which has already been well-received by users.
Mandar Agashe, Founder & MD of Sarvatra Technologies Pvt Ltd, highlights this as a significant advancement. He explains that while the current process of depositing cash involves inserting a debit card, entering a PIN, and selecting the deposit option, the new UPI-ICD feature will allow for a completely cardless transaction. As long as your bank account is UPI-enabled, depositing cash will be as easy as making a payment via UPI.
Step-by-Step Guide to Using UPI for Cash Deposits at ATMs
Based on the existing UPI cardless cash withdrawal process, here’s what you can expect when using UPI-ICD for cash deposits:
- Locate a Cash Deposit Machine (CDM): Find an ATM or CDM that supports UPI transactions.
- Select UPI Cash Deposit Option: On the CDM, choose the “UPI Cash Deposit” option.
- Scan the QR Code: A QR code will appear on the CDM’s screen. Use your UPI app on your smartphone to scan the code.
- Verify Deposit Amount: The UPI app will show the amount detected by the CDM. Ensure it matches the cash you’re depositing.
- Select Bank Account: Choose the bank account linked to your UPI that you wish to deposit the cash into, then authorize the transaction using your UPI PIN.
- Confirmation: You may be prompted to enter the number of bills for each denomination you’re depositing. After the transaction, the CDM might provide a confirmation slip for your records.
When Can You Start Using UPI-ICD?
The NPCI has mentioned that these features will be gradually rolled out by banks. As the technology becomes available, customers will be able to access and benefit from this convenient and innovative way of depositing cash.
This development is a part of India’s ongoing efforts to enhance digital banking services, making financial transactions more accessible, secure, and user-friendly. Keep an eye out for updates from your bank on when UPI-ICD will be available to you.
