RBI New Feature: Cash Deposit at ATM using UPI
The Reserve Bank of India (RBI) has introduced two new features for UPI (Unified Payment Interface) users with the purpose of increasing cash deposits and ease in making transactions. RBI Governor, Shaktikanta Das unveiled these new features as part of the RBI’s monetary policy statement.
These two new features of UPI permit the app users to make UPI payments using PPIs via third-party apps and provide a facility to deposit cash at Cash Deposit Machines using UPI.
The New UPI Features are:
1. UPI payments using PPIs via third-party apps
This new initiative of RBI allows users to UPI payments using PPIs (Prepaid Payment Instruments) via third-party apps. This facility will expand customer convenience and encourage small-value payments via digital transactions. UPI users can now connect their PPI wallets to third-party UPI apps to allow transactions effortlessly.
This initiative improves interchangibility across PPI wallets by allowing Full KYC PPI Wallets to function together.
2. Cash Deposit Facility at Cash Deposit Machines using UPI
This new feature enables cash deposits at Cash Deposit Machines using UPI, similar to the current UPI cardless cash withdrawal process. Currently, cash deposits at Cash Deposit Machines (CDMs) initially will depend on debit cards but physical cards will not be needed.
This proposed facility will simplify the procedures of cash deposits by using card-less transactions. This will only require bank accounts attached to UPI to deposit cash at CDMs.
