UPI could use to cash deposits in Cash Deposit Machines (CDMs)
In recent years, Unified Payments Interface has seamlessly integrated into our daily routines. While we primarily utilize it for transferring money or making payments via QR code scanning at stores, its utility extends beyond transactions. Now, UPI offers the convenience of cash withdrawals from ATMs. To further enhance customer convenience, the Reserve Bank of India (RBI) has introduced a cash deposit feature through Unified Payments Interface at ATMs. The central bank announces that soon customers will be able to deposit cash through the UPI app at both bank branches and ATMs equipped with cash deposit machines (CDMs).
In reaction to the RBI‘s actions, Arvinder Singh Nanda, Senior Vice President at Master Capital Services, remarked, “Initiatives like trading sovereign green bonds and enabling cash deposits through Unified Payments Interface are anticipated to boost market liquidity. Overall, the post-policy outlook seems to yield a balanced outcome for the equity market.”
The installation of Cash Deposit Machines (CDMs) by banks not only improves customer convenience but also alleviates the cash-handling burden on bank branches. Currently, cash deposit services are solely accessible through debit cards. Considering the widespread adoption and popularity of UPI, along with the positive impact observed from its utilization for cardless cash withdrawals at ATMs, there is now a proposal to introduce a cash deposit feature through UPI.
