Soon, You Can Deposit Cash in Banks Through Your UPI: RBI
8th April 2024: In a significant decision, the Reserve Bank of India (RBI) has announced that soon individuals will be able to deposit cash into their bank accounts through the popular Unified Payment Interface (UPI), a mobile phone-based payment system that facilitates inter-bank transactions.
RBI Governor Shaktikant Das emphasized on Friday that individuals can now conveniently deposit cash into their accounts through Cash Deposit Machines (CDMs) provided by banks, thereby easing the burden on traditional bank branches. Until now, cash deposits could be made using debit cards. However, shortly, the option to deposit cash via mobile phones will be available, further streamlining the banking experience.
Recognizing UPI’s status as the leading platform for digital payments in India, the RBI has decided to introduce a policy aligned with this reality, aimed at benefiting the public while also reducing the burden of the bank branches.
In this streamlined process, individuals no longer require a debit card or any additional documentation to deposit cash; they can simply visit their nearest Cash Deposit Machine (CDM) and effortlessly complete the transaction. CDMs, similar to ATMs but with the added functionality of cash deposition, cater to the needs of individuals who cannot afford to wait in long queues at bank branches or who prefer to deposit cash outside of regular office hours. This convenience empowers customers with greater flexibility and accessibility in managing their financial transactions.
Depositing cash is now simpler than ever: all you need to do is visit a Cash Deposit Machine (CDM), select the “cardless cash deposit” option on the screen, and follow the familiar steps. Instead of using your debit card PIN, you’ll verify the transaction with your UPI PIN, and guess what the deposit is complete. This innovation offers tremendous convenience, as individuals no longer need to carry their debit cards everywhere; they can effortlessly manage their cash deposits using just their mobile phones.