Digital payments in India have seen massive growth with UPI (Unified Payments Interface) becoming the most preferred mode of transactions. To further expand UPI’s utility beyond online transfers and merchant payments, the Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) introduced Interoperable Cash Deposit using UPI (UPI-ICD).
This facility enables customers to deposit cash at any participating bank’s Cash Deposit Machine (CDM) by simply scanning a UPI QR code, making banking even more flexible and convenient.
What is UPI-ICD?
Interoperable Cash Deposit using UPI (UPI-ICD) is a facility that allows customers to deposit cash into their bank account by using their UPI app at a Cash Deposit Machine (CDM) of any participating bank.
Instead of using a debit card, customers can scan the dynamic QR code displayed on the CDM screen with their UPI app, enter the amount, insert the cash, and confirm the transaction. The amount is then instantly credited to their account.
Features of UPI-ICD
- Interoperability: Works across participating banks and their CDMs.
- UPI-Based Access: Eliminates the need for debit/ATM cards.
- QR Code Technology: Uses dynamic QR codes for secure authentication.
- Instant Credit: Deposited amount is credited to the account in real time.
- 24×7 Availability: Can be used anytime at available CDMs.
- Supports Multiple UPI Apps: Works with Paytm, BHIM, PhonePe, Google Pay, and other UPI-enabled apps.
Benefits of UPI-ICD
1. Greater Convenience
Customers don’t need to carry their debit card, just a smartphone with a UPI app.
2. Wider Access
Deposits can be made at any participating bank’s CDM, regardless of where you hold your account.
3. Faster Transactions
The process is quick with real-time settlement into the linked account.
4. Enhanced Security
UPI PIN-based authorization and dynamic QR codes ensure safe deposits.
5. Financial Inclusion
Helps rural and semi-urban customers who may not have cards but use UPI apps.
How Does UPI-ICD Work?
- Visit a participating bank’s Cash Deposit Machine (CDM).
- Choose the UPI-ICD option on the screen.
- A dynamic QR code will be displayed.
- Open your UPI app and scan the QR code.
- Enter the deposit amount in the app and insert the cash notes in the machine.
- Authenticate the transaction using your UPI PIN.
- Collect the receipt – the money is credited instantly to your account.
Why UPI-ICD Matters
UPI-ICD bridges the gap between cash-based banking and digital banking. It’s particularly helpful for:
- Small business owners depositing daily collections.
- Rural customers who rely on cash but use UPI apps.
- Students and professionals who don’t always carry debit cards.
By merging UPI with cash deposit machines, RBI and NPCI have expanded the scope of UPI beyond peer-to-peer and merchant payments.
Final Thoughts: The Interoperable Cash Deposit using UPI (UPI-ICD) is a step forward in making banking services more flexible, card-free, and customer-friendly. By combining the reach of UPI with the availability of CDMs, it simplifies the deposit process for millions of bank customers across India.
Author
