'UPI ICD': RBI launches new feature that allows depositing cash in ATMs without card; check details

The Reserve Bank of India (RBI) has launched a new feature that allows depositing cash in automated teller machines (ATMs) without using a physical card.

The feature, known as UPI ICD, was unveiled by RBI Deputy Governor Rabi Sankar at the Global Fintech Fest in Mumbai on August 29. It has been launched in association with the National Payments Corporation of India (NPCI), the government agency for operating retail payments and settlement systems in India.

"The introduction of UPI ICD allows customers to deposit cash at ATMs operated by banks and white label ATM operators (WLAOs) using UPI to their own bank account or any other bank account without the need for a physical card," NPCI said in a release.

These ATMs are cash recycler machines which are used for both cash deposits and withdrawals, it added.

"Leveraging their mobile numbers linked to UPI, virtual payment addresses (VPA) and account IFSCs, customers can now do cash deposits, making the process more seamless, inclusive and accessible," NPCI further said.

The feature will be available to consumers in phases, as banks will gradually roll them out, the release noted.

UPI ICD has been launched at a time when the usage of unified payments interface has been soaring in India. According to NPCI chief operating officer Praveena Rai, up to 6 million UPI users are added every month. "Every month, UPI adds from 3 to 6 million users," news agency IANS quoted her as saying at a media event in New Delhi last month.