Now, Bank account holders can deposit cash at ATMs using Unified Payments Interface (UPI) instead of a physical debit card as this feature was launched by the Reserve Bank of India recently.
UPI-ICD Services Launch
As per this development, the Deputy Governor, T. Rabi Sankar unveiled the UPI Interoperable Cash Deposit (UPI-ICD) service during the Global Fintech Fest 2024 in Mumbai.
With the help of this feature, users can deposit cash into their own or any other bank account via UPI at ATMs operated by banks and white- label ATM operators.
According to the National Payments Corporation of India (NPCI), “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,” as they said in a statement.
How Does It Work?
If you are wondering about the use of these services, the customers simply need to select the cash deposit option at compatible ATMs.
Afterward, they will have to input their UPI-linked mobile number or virtual payment address, and insert cash into the machine’s deposit slot.
Now its ATM’s turn to process the deposit and it will be credited to the specified account.
When it comes to the availability of the UPI-ICD feature, it is presently available only at ATMs which are equipped with cash recycler technology which is required to handle both deposits and withdrawals.
In the coming times, the Banks will gradually roll out the service across their ATM networks.
It is worth mentioning here that this latest offering is built on the cardless cash withdrawal via UPI capability which was earlier introduced in 2023.
Basically, these services are aimed towards enhancing the banking convenience by streamlining the cash deposit process and reducing reliance on physical cards.
As expected, it comes with a price as the Banks and ATM operators will have to upgrade their machines to support the UPI-ICD functionality.
Further, the NPCI informed that they are planning to implement this feature in different phases nationwide.
