Reserve Bank of India (RBI) has announce a new feature allowing users to deposit cash through cash deposit machines (CDMs) using Unified Payments Interface (UPI) in a move aim at enhancing customer convenience and streamlining currency handling processes.
As cash deposits at ATMs have facilitate through the use of debit cards.
But, with success of card-less cash withdrawal using UPI, the RBI has decide to extend this functionality to cash deposits as well.
RBI said while announcing the monetary policy committee outcome :
"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 deposit of cash in CDMs using UPI. This measure will further enhance customer convenience and make the currency handling process at banks more efficient."
Benefit of This New Feature for Customers
- It eliminates the need for physical debit cards when depositing cash at ATMs, making the process more convenient and hassle-free.
- You can simply initiate a cash deposit transaction via the UPI-enable interface without having to carry their debit cards with them.
- It enhances security by reducing the risk associate with carrying physical cards.
- With UPI-based transactions, you can leverage the security features and authentication protocols of UPI, which are design to safeguard against fraudulent activities.
So, UPI-based cash deposits offer greater flexibility and accessibility to customers.
They can deposit cash at any time, even outside banking hours, as long as the ATM supports UPI transactions.
The introduction of this UPI-based cash deposits at ATMs marks another step forward in the ongoing efforts to digitize and modernize banking services in India under the current regime.
It not only enhances convenience for customers but also contributes to the efficient functioning of banking operations.
