The Unified Payments Interface (UPI) has become a part of our daily lives, making it easy for us to make transactions over the past couple of years. The Reserve Bank of India has developed a new feature that allows users to withdraw and deposit cash from their accounts without having a physical debit card or even their account number and IFSC number. This feature of RBI is being popular as UPI Interoperable Cash Deposit.
Overview
The RBI’s new UPI Interoperable Cash Deposit feature is set to transform banking convenience. The table below highlights how users can deposit money easily.
| Aspect | Details |
|---|
| Cash deposit by UPI app | Customers can now use UPI apps at Cash Deposit Machines (CDMs) to deposit money directly into their accounts without needing a debit card. |
| Cash deposit by UPI without atm card | The feature removes the need for a physical ATM card or account details, making cash deposits more secure and convenient. |
| Cash deposit by UPI charges | Currently, RBI has not announced additional charges for this facility, but banks may later decide based on their policies. |
| Cash deposit by UPI limit | Users can deposit up to ₹5 lakhs in select sectors like hospitals and educational institutions, ensuring flexibility and accessibility. |
| UPI Interoperable Cash Deposit | This RBI initiative integrates UPI with the full banking value chain, allowing cardless deposits and withdrawals at ATMs and CDMs. |
Latest UPI Feature Update
In the first bi-monthly committee meeting for FY24–25, RBI Governor Shaktikanta Das put forward allowing UPI apps, now Cash deposit by UPI app to make payments and cash deposits at Cash Deposit Machines (CDMs).
The Governor said, "Deposits of cash through cash deposit machines (CDMs) are being done through the use of debit cards. Given the experience gained from cardless cash withdrawal using UPI at ATMs, it is now proposed to ease the deposit of cash in CDMs using UPI."
Customers can Cash deposit by UPI without ATM card via the new UPI feature. With the popularity of UPIs related to cash withdrawals, the Reserve Bank of India has decided to make the service available for cardless cash deposits as well.
The reason for this decision. i.e. deposit money through UPI by the RBI was related to enhancing customer convenience and also making the currency handling processes at banks more efficient.
The governor said, "Enabling UPI for cash deposits is the RBI's focus towards integrating UPI as a part of the entire financial services value chain, given the positive level of customer experience and ease that UPI has been known for."
By eliminating the need for a physical debit card for cash deposits, the security measures at hand can be improved. This also allows customers to deposit cash anytime they want, even outside of banking hours.
Latest UPI Lite Update
Two new updates have been introduced in the UPI Lite service as well. UPI Lite is an online wallet that allows people to make small, mundane transactions. Apart from the UPI Interoperable Cash Deposit, those two additional changes are:
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Balance of UPI Lite: The balance of UPI Lite will now automatically be updated, which eliminates the hassle of manually updating the balance. The balance will be updated after it reaches a minimum limit set by the account holder.
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Increased UPI Limit: The limit set on transactions made using UPI Lite has been increased by up to Rs. 500 per transaction. The limit on the UPI Lite wallet balance has also been increased from Rs. 2000 to Rs. 5000.
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What Is UPI-ICD?
Unified Interoperable Cash Deposit, also known as the UPI ICD, is a new initiative launched to enable cash withdrawals through depositing money through UPI. It eliminates the need for debit cards to withdraw cash from ATMs.
Key Features Of The New UPI Feature
The new UPI feature has several key features that outline its purpose. Some of the key features of this new UPI feature are as follows:
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Cash withdrawal through UPI: People can now withdraw from ATMs using their UPIs without the need for a debit card.
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Secure: A 4-hour window has been introduced for high-value payments, which means those people who are making a transaction of Rs. 2000 for the first time have a window for reviewing or cancelling the transactions if need be.
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Inactive UPI IDs: Those UPI IDs that remain unused for over a year will automatically get deactivated.
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Transaction limits: There is a cash deposit by UPI limit of up to Rs. 5 lakhs when someone is making a payment to some sectors like hospitals and educational institutions.
Benefits Of Cash Withdrawal Through UPI
There are several benefits of this new UPI feature introduced by RBI. Some of the major benefits of this new feature are:
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It makes it convenient for the users, as they can cash deposit by UPI without ATM card or even remember the PIN to deposit the cash.
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It is accessible for people who don’t have access to their card or if they forgot it at home.
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The transaction needs the user’s UPI PIN. It is like an extra layer of protection compared to normal card transactions.
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It also gives instant confirmation if the transaction was complete or not, which will give the people peace of mind.
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How To Deposit Cash Using UPI At An ATM?
People can now make Cash deposits by UPI charges. One can do so by following the steps mentioned below:
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At the ATM, select the “UPI cashless deposit” option when presented on the screen before you.
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After this, choose and confirm the amount that you want to deposit, and also double-check the recipient and their bank details before proceeding with the transaction.
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A QR code will be displayed on your screen after this step. Use your mobile phone to scan the same. Ensure that your UPI app and your bank account are linked to avoid any hassle. In your UPI app, enter your UPI PIN to confirm the authentication.
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Once the transaction is authenticated and legitimised, follow the on-screen instructions and deposit your money into the tray or slot.
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Once finished, collect the receipt of the transaction as proof that your deposit using UPI is done.
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Conclusion
The new UPI feature of Cash deposit by the UPI app will create a significant evolution in modern banking practices by adapting to the changes and trends in the world and catering to the changing needs of users of deposit money through UPI.
By adopting cashless card deposits, India is stepping foot towards a digitalized nation.
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