New Delhi: The Reserve Bank of India's Deputy Governor, T Rabi Sankar, introduced a new feature called the UPI Interoperable Cash Deposit (UPI-ICD) facility at the Global Fintech Fest 2024 on August 29, 2024. This feature will soon allow customers to deposit cash at ATMs using the Unified Payments Interface (UPI) apps without needing a physical debit card.
How Will UPI Interoperable Cash Deposit Feature Work?According to the National Payments Corporation of India (NPCI), the UPI ICD facility will enable customers to deposit cash into their bank accounts or any other bank accounts at ATMs. These ATMs, known as Cash Deposit Machines (CDMs), can handle both cash deposits and withdrawals. Customers can use their mobile number linked to UPI, along with virtual payment addresses (VPA) and account IFSCs, to deposit cash directly into their accounts. This process eliminates the need for a physical debit card, making cash deposits at ATMs more convenient and accessible. When Will It Be Available?The NPCI mentioned that this new feature would be rolled out gradually by banks, so customers can expect to start using the UPI interoperable cash deposit facility at ATMs in the coming months.
What Are The Benefits For Customers?The UPI cardless cash deposit system will work similarly to the already existing UPI cardless cash withdrawal feature. Currently, to deposit cash at ATMs or bank branches, customers need to use their debit cards. With the new UPI-ICD feature, carrying a debit card will no longer be necessary for cash deposits. This adds a layer of convenience and safety for customers, as they can now perform transactions more seamlessly through their UPI apps.
