The Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday (April 5, 2024), announced that users will be allowed to use the Unified Payments Interface (UPI) system to deposit cash in ATMs soon. The announcement is seen as a big shot in the arm for users as it will save both their time and effort.
Shaktikanta Das made this statement on the concluding day of the three-day Monetary Policy Committee (MPC) meeting. In the digital age where most of us have switched from traditional mode of payments to cashless transactions, UPI is primarily used for peer-to-peer transactions, bill payments, merchant transactions, and other digital payments. UPI has gained immense popularity in India and contributed to the surge in digital payments in the country due to its convenience, speed, and interoperability.
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Now, with the central bank’s latest announcement, users will be allowed to deposit cash at Cash Deposit Machines (CDMs) using just their UPI instead of requiring an ATM/debit card.
The RBI Governor said, “Deposit of cash through Cash Deposit Machines (CDMs) is primarily being done through the use of debit cards. Given the experience gained from card-less cash withdrawal using UPI at the ATMs, it is now proposed to also facilitate the deposit of cash in CDMs using UPI. This measure will further enhance customer convenience and make the currency handling process at banks more efficient.”
UPI Access for Prepaid Payment Instruments (PPIs) Via Third-Party Apps
Currently, UPI payments from Prepaid Payment Instruments (PPIs) can be made via the web or mobile app provided by the PPI issuer. However, it has now been proposed to permit the usage of third-party UPI apps for making UPI payments from PPI wallets. This according to RBI will further improve customer convenience and encourage the adoption of digital payments for small-value transactions.
RBI Keeps Repo Rate Unchanged At 6.50%.
The RBI on Friday kept the repo rate unchanged at 6.50% for the seventh time in a row. The RBI said, “Inflation is moving closer to targets, but the last mile of disinflation is turning out to be challenging.” The standing deposit facility (SDF) rate stands at 6.25%.
How To Use UPI-based Cash Deposit System To Withdraw Cash?
The steps you need to follow to use the UPI-based cash deposit system include:
- Choose the option of “UPI Cardless Cash” available on the ATM screen to start the cardless withdrawal process.
- Select the amount.
- Scan the QR Code through your smartphone which has a UPI app installed.
- Use the app to scan the QR code that is displayed on the ATM screen.
- Confirm with your UPI PIN to validate the UPI ATM withdrawal.
- You are all set to collect the cash.
