- The RBI introduced UPI Interoperable Cash Deposit, allowing cash deposits at ATMs via UPI without needing a debit card.
- This service was officially launched during the Global Fintech Fest 2024.
- Users can deposit cash into any bank account using UPI at ATMs with cash recycler technology.
- This move is part of the RBI's effort to expand UPI and boost digital payments in India.
The Reserve Bank of India (RBI) has introduced a feature that allows customers to deposit cash at ATMs using the Unified Payments Interface (UPI). This service eliminates the need for physical debit cards , making banking transactions more convenient and accessible.
The UPI Interoperable Cash Deposit (UPI-ICD) service was officially launched at the Global Fintech Fest 2024 in Mumbai by Deputy Governor T. Rabi Sankar. It enables users to deposit cash into their own or any other bank account through UPI at ATMs operated by banks and white-label ATM operators.
How UPI-ICD Works:
- Locate a Compatible ATM: The UPI-ICD feature is currently available only at ATMs equipped with cash recycler technology*, which can handle both cash deposits and withdrawals.
- Select Cash Deposit: At the ATM, choose the “Cash Deposit” option.
- Enter UPI Details: Enter your UPI-linked mobile number or virtual payment address (VPA) and the account’s IFSC code.
- Insert Cash: Deposit the cash into the ATM’s deposit slot.
- Confirmation: The ATM will process the deposit and credit the specified account.
| Recycler Technology*: Recycler technology in ATMs refers to a specialized machine component that can both dispense and accept cash. |
Benefits of UPI-ICD:
- Enhanced Convenience: Streamlines the cash deposit process, eliminating the need for physical cards and saving time.
- Greater Inclusivity: Makes banking services accessible to a wider range of customers, including those who may not have access to or prefer not to use physical cards.
- Improved Efficiency: Reduces reliance on physical cash handling, leading to optimized cash management for banks.
Implementation Timeline:
Banks and ATM operators will need to upgrade their machines to support the UPI-ICD functionality. The National Payments Corporation of India (NPCI) has announced that the feature will be implemented in phases by banks nationwide, ensuring widespread availability over time.
Expanding UPI’s Reach:
The UPI-ICD service marks another significant step forward in the expansion of UPI’s capabilities and its growing role in transforming the Indian digital payments landscape. This innovative feature demonstrates the RBI’s commitment to enhancing banking convenience, promoting financial inclusion, and driving the adoption of digital payments.
