The Reserve Bank of India (RBI) has introduced a new feature allowing cash deposits at ATMs via Unified Payments Interface (UPI), eliminating the need for physical debit cards. This UPI Interoperable Cash Deposit (UPI-ICD) service was launched by Deputy Governor T. Rabi Sankar at the Global Fintech Fest 2024 in Mumbai.
According to the National Payments Corporation of India (NPCI), customers can now deposit cash into their own or any other bank account using UPI at ATMs operated by banks and white-label ATM operators. This feature utilizes customers’ mobile numbers linked to UPI, virtual payment addresses (VPA), and account IFSCs to make cash deposits more seamless and accessible.
To use this service, customers select the cash deposit option at compatible ATMs, enter their UPI-linked mobile number or virtual payment address, and deposit cash into the machine. The ATM processes the deposit and credits the specified account.
The UPI-ICD feature is available only at ATMs with cash recycler technology capable of handling both deposits and withdrawals. The service will be rolled out gradually across ATM networks as banks upgrade their machines to support this functionality.
This new feature builds on the cardless cash withdrawal capability via UPI introduced in 2023, aiming to enhance banking convenience by streamlining the cash deposit process and reducing reliance on physical cards.
