Your Unified Payments Interface (UPI) has just been upgraded. In an important announcement today, the Reserve Bank of India (RBI) said that users can now deposit cash via UPI facility at bank ATMs- a big shot in the arm for users in terms of saving time and effort.
The change was revealed by the RBI governor Shaktikanta Das while announcing the RBI Monetary Policy Committee (MPC) decision which maintained a status quo on repo rates. On the new UPI facility, governor Shaktikanta Das said, “RBI has proposed to allow cash deposits through UPI.”
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This move comes, he explained, from the learnings derived from the use of cardless cash withdrawal system at ATMs via UPI. He added that most users use debit cards to deposit cash at the cash deposit machines (CDM).
While CDMs help bank officials by reducing manual workload of handling cash, for users, this means avoiding long bank queues and easy access to an automated facility of choice.
Operational instructions for this UPI facility will be released soon.
{{/usCountry}}Operational instructions for this UPI facility will be released soon.
{{/usCountry}}"At present, UPI payments from Prepaid Payment Instruments (PPIs) can be made only by using the web or mobile app provided by the PPI issuer. It is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI wallets. This will further enhance customer convenience and boost adoption of digital payments for small value transactions," he further said.
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How the new UPI-based cash deposit system will work
In many ways, the new system is expected to be on the lines of the current withdrawal system. Currently, to withdraw cash through UPI at an ATM requires certain steps to be taken. Follow these steps to use the new UPI-based cash deposit system:
- Select "UPI Cardless Cash" on the ATM screen option which starts the cardless withdrawal process.
- Then you need to pick the amount.
- Scan the QR Code which can be done via your smartphone with a UPI app installed.
- Use the app to scan the QR code displayed on the ATM screen.
- Confirm with your UPI PIN to validate the UPI ATM withdrawal.
- After this, alll you need to do is collect the cash.
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In effect, the new system to deposit cash through UPI at ATMs will be quite similar, process-wise. This system has been found to be safe and easy to remember and customers have become used to it. The best part about the entire facility will be that your debit card will no longer be required.