Customers can now conveniently deposit cash at ATMs using any UPI app, eliminating the need for debit cards or any physical cards. The Reserve Bank of India’s Deputy Governor, T Rabi Shankar, unveiled this new feature, called UPI Interoperable Cash Deposit (UPI-ICD), at the Global Fintech Fest (GFF) 2024 in Mumbai, Maharashtra, on Thursday, August 29.
The UPI-ICD feature allows users to make cardless cash deposits through UPI, but it is currently available only at ATMs equipped for both cash deposits and withdrawals, known as cash-recycler machines. Cardless cash withdrawals via UPI have been available since 2023.
This new capability leverages a customer’s mobile number linked to UPI, virtual payment addresses (VPA), and account IFSCs, enabling them to deposit cash into their own account or any other bank account, as stated in a press release by the National Payments Corporation of India (NPCI), which operates UPI. The RBI had initially hinted at the UPI-ICD feature back in April, without specifying a launch date. According to NPCI, banks will gradually roll out this feature, allowing consumers to access it over time.
In addition to cash deposits, ATMs are being upgraded to function as digital banking units (DBUs), offering new capabilities such as hosting bank apps. Through these enhanced ATMs, customers can open bank accounts, apply for credit cards, initiate fixed deposits, and apply for safe deposit lockers, among other services.
The Unified Payments Interface (UPI) continues to be a key enabler for digital payment apps, supporting peer-to-peer transactions, bill payments, merchant transactions, and more. These latest UPI features are part of the RBI and NPCI’s ongoing efforts to expand the reach and utility of the payments interface. Recently, RBI Governor Shaktikanta Das introduced UPI Circle, a feature that allows users to share their primary UPI with trusted secondary users, such as friends and family, so they can make payments from the same account.
