Following the widespread adoption of cardless cash withdrawal via Unified Payments Interface (UPI) at ATMs, Reserve Bank of India Governor Shaktikanta Das unveiled plans to introduce a similar feature for cash deposit machines (CDMs) during a press conference after the three-day Monetary Policy Committee (MPC) meeting on Friday.
Das explained, “Traditionally, cash deposits in CDMs have relied on debit cards. Building on the success of cardless cash withdrawal using UPI at ATMs, we propose to extend this functionality to cash deposits in CDMs using UPI. This initiative aims to further streamline customer transactions and optimize currency management processes at banks.”
He further stated that detailed operational guidelines for this new feature would be released imminently.
Additionally, the RBI governor proposed enabling UPI payments from prepaid payment instruments (PPIs), such as mobile wallets, through third-party applications.
“Presently, UPI payments from PPIs are restricted to the issuer’s web or mobile applications. We intend to broaden this scope by allowing third-party UPI apps to facilitate UPI payments from PPI wallets,” Das elaborated.
So, how exactly will the UPI-based cash deposit facility operate? Currently, CDMs are configured to read debit cards. However, soon customers will have the option to utilize UPI instead. Upon scanning the QR code displayed on the machine’s interface, users can proceed to deposit cash into the designated tray or slot, ensuring a seamless transaction experience.
Similar to the process of cardless cash withdrawal at ATMs, which enables UPI users to withdraw funds without a physical debit card, the UPI-based ATM cash withdrawal follows a simple procedure:
- Navigate to the ATM and select ‘UPI cash withdrawal’
- Enter the desired withdrawal amount
- A QR code will be generated on the screen
- Scan the QR code using a UPI-enabled application and authenticate the transaction with a PIN
- Upon successful confirmation, the ATM will dispense the requested cash amount.
Unified Payments Interface (UPI) is an instantaneous payment system developed by the National Payments Corporation of India (NPCI). Since its inception in 2016, UPI has expanded its reach beyond India, being adopted in countries such as Nepal, Sri Lanka, Mauritius, France, UAE, Singapore, and Bhutan.