The Deputy Governor, Reserve Bank of India, T Rabi Sankar, launched the UPI Interoperable Cash Deposit facility at the Global Fintech Fest (GFF) 2024 held on August 29, 2024. This will allow people to deposit cash from CDMs located at ATMs through UPI apps. Nevertheless, the customer will be provided with options to deposit the money into their bank account or any other bank account using the UPI Interoperable Cash Deposit feature.
NPCI announces UPI-ICD features
The detailed functioning of UPI-ICD was elaborated by the NPCI in a press release on the very same day. According to NPCI, “With UPI ICD, it becomes possible for customers to deposit cash in ATMs belonging to banks and WLAOs using the UPI feature without the usage of any physical card.
The proposed ATMs would be cash recycling machines wherein money deposits and its dispense are available. The customer is hence enabled to conduct cash deposits by using their mobile number used for UPI, VPA, and account IFSC, thereby smoothing the process of UPI Interoperable Cash Deposit.
Comparison with current cash deposit methods
The process for the UPI cardless cash deposit is likely to be much similar to the UPI cardless cash withdrawal system already at work. Presently, depositing cash in most CDMs requires a debit card, whether in banks or at ATMs. However, in the case of this UPI Interoperable Cash Deposit, the need to carry a debit card for deposit purposes will be ruled out.
Industry perspectives on UPI cash deposits
Mandar Agashe, Founder and MD of Sarvatra Technologies Pvt Ltd, commented on the development (via Economic Times) thus: “The enablement of UPI for cash deposit facilities is another use-case of UPI. Currently, one has to insert a debit card, feed the PIN, and select ‘deposit’ to complete the process at the ATM or CDM.
In the days to come, the process will be further reduced and will get cardless; at that time, the user will require only UPI enabled on his bank account. This will further simplify banking transactions at CDMs by facilitating UPI Interoperable Cash Deposit.”
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Guide to UPI cash deposits at ATMs
ICICI Direct has indicated a possible step-by-step process for cash deposits via ATMs using UPI. In this regard, the process aligns with the existing UPI cardless cash withdrawal facility. So, it is expected to be similar to the UPI Interoperable Cash Deposit feature.
- Find a Cash Deposit Machine (CDM) and find the UPI transaction facility. In the CDM, select “UPI Cash Deposit” option besides the usual debit card option.
- A QR code will appear on the screen of the CDM.
- Open the UPI app on your mobile phone and scan the QR code flashed by the CDM.
- Verify the deposit amount detected by the CDM under the UPI app.
- Select the bank account where you want to deposit the cash from your linked UPI accounts. Furthermore, authorize the transaction with your UPI PIN.
Rollout of UPI cash deposit features
In depositing through UPI, you may need to type in the number of bills for each denomination being deposited. Once a successful transaction is completed, a confirmation slip will likely be dispatched by the CDM. Furthermore, NPCI mentioned that the feature will be available as banks roll out the UPI Cash Deposit feature.