Traditionally, a debit card is essential for cash transactions at ATMs, especially for depositing cash.
However, this process often comes with the risk of losing or misplacing the card, which could lead to misuse.
To address these concerns, a new feature will soon allow users to deposit cash in ATMs using UPI, eliminating the need for a debit card.
Introducing UPI-Enabled Cash Deposits
The Reserve Bank of India (RBI) Deputy Governor T Rabi Shankar recently announced the UPI Interoperable Cash Deposit (UPI-ICD) feature at the Global Fintech Fest (GFF) 2024.
This innovative service will soon be available, making cash deposits in ATMs much easier and more secure.
According to a press release by the National Payments Corporation of India (NPCI), customers will be able to deposit cash through UPI in ATMs operated by banks and White Label ATM Operators (WLAO).
This feature allows users to deposit cash into their own or another bank account without using a physical debit card.
The service will be rolled out gradually, and customers will begin to benefit from this new feature as banks implement it.
How Does It Work?
These ATMs are equipped with cash recycler machines that handle both cash deposits and withdrawals.
Now, customers can deposit cash by simply using their mobile numbers linked to UPI, Virtual Payment Address (VPA), and account IFSCs.
This new method is expected to be as simple and secure as the UPI cardless cash withdrawal process.
Steps to Deposit Cash Using UPI
Locate a UPI-Enabled ATM: Find an ATM or cash deposit machine that supports UPI transactions.
Choose the UPI Cash Deposit Option: Instead of selecting the debit card option, choose the UPI cash deposit option on the machine.
Scan the QR Code: Use your UPI app to scan the QR code displayed on the cash deposit machine.
Enter Cash Details: Input the number of notes you wish to deposit (e.g., ₹100, ₹500). The machine will then provide a confirmation.
Confirm the Deposit: Once confirmed, the cash will be deposited into the machine, and you will receive a receipt. Ensure that the amount on the receipt matches the cash you deposited.
Select the Account: Choose the account linked to your UPI in which you want to deposit the cash. Complete the transaction by entering your UPI PIN.
For more details, you can visit the official RBI blog.
This new UPI-ICD feature simplifies the cash deposit process, offering more convenience and security to users.
