New UPI feature launched: Deposit cash at ATMs using UPI, no debit card needed; how to use UPI Interoperable Cash Deposit
The Reserve Bank of India's Deputy Governor T Rabi Sankar, unveiled the UPI interoperable cash deposit (UPI-ICD) facility at the Global Fintech Fest (GFF) 2024 on August 29, 2024. Customers can soon deposit cash at cash deposit machines (CDMs) at ATMs using Unified Payments Interface (UPI) apps to their bank account or any other bank account. How will UPI interoperable cash deposit facility work? How will it benefit the customers? Read here to find out.
In a press release dated August 29, 2024, the National Payments Corporation of India (NPCI) says, "The introduction of UPI ICD allows customers to deposit cash at ATMs operated by banks and white label ATM operators (WLAOs) using UPI to their bank account or any other bank account without the need for a physical card. These ATMs are cash recycler machines which are used for both cash deposits and withdrawals. Leveraging their mobile numbers linked to UPI, virtual payment addresses (VPA) and account IFSCs, customers can now do cash deposits, making the process more seamless, inclusive and accessible."
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 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.
Mandar Agashe, Founder & MD, Sarvatra Technologies Pvt Ltd, says, “The enablement of UPI for cash deposit facility is another remarkable use-case of UPI. Currently, to access the cash deposit facility, the user must insert his/her debit card, enter the PIN and select “deposit” to complete the cash deposition process at the ATM or CDM. Going ahead, this will be a card-less process, all that the user will need, is UPI enabled on that bank account. This will make the banking transaction-CDM as easy as making payments via UPI."
