Reserve Bank of India (RBI) Governor Shaktikanta Das unveiled a groundbreaking proposal for a new UPI-based cash deposit facility during the first monetary policy statement for the fiscal year 2024-25.
This initiative aims to revolutionize cash deposits by allowing individuals to use their Unified Payments Interface (UPI) instead of traditional ATM/debit cards at Cash Deposit Machines (CDMs).
UPI Revolutionizes Cash Deposits
Traditionally used for peer-to-peer transactions, bill payments, and merchant transactions, UPI has become synonymous with digital payments in India due to its convenience and speed. With this latest announcement, UPI’s utility expands to include cash deposits at CDMs, marking a significant milestone in India’s digital payment ecosystem. This move aligns with the RBI’s efforts to promote digital transactions and reduce cash-handling loads on bank branches.
Empowering Customers with UPI at CDMs
The proposal to enable UPI for cash deposit facility underscores the RBI’s commitment to enhancing customer convenience and promoting financial inclusion. Cash Deposit Machines, which function as ATMs allowing direct cash deposits into bank accounts, offer a hassle-free alternative to traditional teller services during branch hours. By leveraging UPI, individuals can seamlessly deposit cash without the need for physical debit cards, further streamlining the banking experience.
