UPI new rule: UPI-based cash deposit facility soon, no ATM card needed; here’s how it will work
Upstox
2 min read • Updated: April 6, 2024, 1:25 PM
Summary
UPI new rule: Currently, cardless cash withdrawal facility is available at many ATMs, which allows UPI users to withdraw money without a debit card. Cash deposit facility through UPI will begin soon, the RBI Governor said today.
After the success of cardless cash withdrawal through Unified Payments Interface (UPI) at ATMs, Reserve Bank of India Governor Shaktikanta Das announced a proposal to deposit money in cash deposit machines (CDMs) using UPI on Friday.
Addressing the media after the three-day Monetary Policy Committee (MPC) meeting, Das said, "deposit of cash through 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.”
He added that the operational instructions for the new facility would be issued soon.
The RBI governor also proposed allowing UPI payments from prepaid payment instruments (such as wallets) through third-party applications.
"At present, UPI payments from prepaid payment instruments (PPIs) can be made only by using the web or mobile app provided by the PPI issuer. It is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI wallets," Das said.
How will a UPI-based cash deposit facility work?
Cash deposit machines presently read debit cards. Soon, customers will have an option to use UPI instead of debit cards. After scanning the QR, they can insert the cash into a designated tray or a slot, and their money will be deposited successfully.
Currently, cardless cash withdrawal facility is available at many ATMs, which allows UPI users to withdraw money without a debit card.
How does UPI-based ATM cash withdrawal work?
- Go to an ATM and select 'UPI cash withdrawal'
- Enter the withdrawal amount
- A QR code will be displayed on the screen
- Scan QR code on UPI and authorise the transaction using PIN
- On successful payment, the ATM will dispense your cash
UPI or United Payments Interface is an instant payment system developed by the National Payments Corporation of India (NPCI). Launched in 2016, UPI is also available in Nepal, Sri Lanka, Mauritius, France, UAE, Singapore and Bhutan.
A recent report released by payment service provider Worldline showed that the use of UPI in India surged by 56% year-on-year (YoY) during the second half of 2023, with the total volume of transactions coming in at 65.77 billion. The transactional volume jumped 44% YoY to ₹99.68 trillion.