You can now make card-less deposits via UPI
The Reserve Bank of India (RBI) has introduced a new system allowing users to make payments from prepaid payment instruments through third-party applications and deposit cash at ATMs using UPI. This move will enhance customer convenience and make the currency handling process at banks more efficient.
Users can now make payments from prepaid payment instruments through third party applications and deposit cash at ATMs, via , the Governor said.“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”, said the Governor Shaktikanta Das
Prepaid payment instruments (PPI) or wallets could only be made by web or applications provided by the PPI issuers. This move will open wallets into the UPI ecosystem.
“Users can connect the banking account, card and now even their wallet to UPI, giving them the choice of using these three channels to make a payment via UPI. This will provide a great boost to the growth of fintechs”, said Rajesh Londhe, Head of Payments at .
Given the popularity of UPI among all users, the RBI has now facilitated deposit of cash through cash deposit machines via UPI.
Currently, to access the cash deposit facility, the user must insert their debit card, enter the PIN and select “deposit” to complete the process at the ATM. The new facility will be a card-less process, enabled by UPI on that bank account.
Source: Stocks-Markets-Economic Times
