On Friday, Governor Shaktikanta Das of the Reserve Bank of India unveiled a plan for a new UPI-based cash deposit service. This declaration was made in conjunction with the release of the first monetary policy statement for the 2024–2025 fiscal year.
Peer-to-peer, bill-paying, merchant, and other digital payments have been the main applications of UPI. With the most recent announcement, you can now use your UPI to deposit cash at Cash Deposit Machines (CDMs) rather than requiring an ATM or debit card.
UPI’s convenience, speed, and interoperability have made it extremely popular in India and have helped to propel the expansion of digital payments there.
The RBI will likely release more details on how this system will work in the future.
RBI Governor said that CDMs deployed by banks enhance customer convenience while reducing the cash-handling load on bank branches. The facility of cash deposit is presently available only through the use of debit cards.
“Given the popularity and acceptance of UPI, as also the benefits seen from the availability of UPI for card-less cash withdrawal at ATMs, it is now proposed to facilitate cash deposit facility through the use of UPI. Operational instructions will be issued shortly,” he added.
Cash Deposit Machines or CDMs are ATMs that allow you to deposit cash directly into your bank account. They are a convenient way to deposit cash without having to visit a teller during branch hours.
UPI
The National Payments Corporation of India (NPCI) created the real-time payment system known as Unified Payments Interface. Without requiring specifics about the beneficiary’s bank account, it allows for immediate money transfers between two bank accounts on a mobile platform.
By doing away with the requirement for conventional banking information like account number, IFSC code, etc., UPI streamlines the payment process. Virtual payment addresses (VPAs), mobile numbers, or QR codes are used to start payments.
In addition to peer-to-peer transfers, UPI can be used for online shopping, mobile recharges, and utility bill payments.
Read More
Major Crackdown: Rs 98.52 Crore Liquor Seized at Mysuru Brewery
