Deposit Cash Using UPI, No ATM card needed

Following the successful implementation of cardless cash withdrawal through the Unified Payments Interface (UPI) at ATMs, Reserve Bank of India Governor Shaktikanta Das unveiled a new proposal on Friday: to enable cash deposits in Cash Deposit Machines (CDMs) using UPI.

During a media briefing after the three-day Monetary Policy Committee (MPC) meeting, Das explained, “Currently, cash deposits in CDMs primarily rely on the use of debit cards. Building on the positive outcomes from the UPI-based cardless cash withdrawal at ATMs, we now propose to facilitate cash deposits in CDMs through UPI. This initiative aims to enhance customer convenience and streamline the currency handling process at banks.”

He mentioned that detailed operational guidelines for this new feature would be forthcoming soon.

Additionally, the RBI governor suggested the extension of UPI payments from prepaid payment instruments (PPIs), such as wallets, through third-party applications.

“Presently, UPI payments from prepaid payment instruments (PPIs) are limited to the web or mobile apps provided by the PPI issuer. We propose to allow the use of third-party UPI apps for making UPI payments from PPI wallets,” Das stated.

How will the UPI-based cash deposit system function? Currently, cash deposit machines are configured to read debit cards. With the upcoming change, customers will have the option to use UPI instead of debit cards. By scanning a QR code, they can then deposit cash into a designated tray or slot, completing the transaction securely.

Notably, many ATMs already offer a cardless cash withdrawal feature, allowing UPI users to withdraw money without a physical debit card.

How does UPI-based ATM cash withdrawal operate? Visit an ATM and select ‘UPI cash withdrawal’ Enter the withdrawal amount A QR code will be displayed on the ATM screen Scan the QR code using a UPI app and authorize the transaction with your PIN Upon successful verification, the ATM will dispense the requested cash amount

The Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI). Introduced in 2016, UPI has expanded beyond India’s borders and is now available in Nepal, Sri Lanka, Mauritius, France, UAE, Singapore, and Bhutan.

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