With the Unified Payments Interface (UPI) having gained massive popularity for an array of transactions, depositors will soon be able to use this phone banking interface service to deposit cash at cash deposit machines (CDMs) at ATMs and bank branches.
Although it is a natural progression in the continuum of fintech evolution we are all witnessing, it still came as a pleasant surprise when Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday at the culmination of bi-monthly monetary policy committee (MPC) meeting.
“The RBI’s proposal for UPI cash deposits is a material leap forward. Faster and more convenient cash deposits translate to a smoother overall experience. By leveraging UPI technology, customers will experience heightened ease and flexibility in managing their finances,” says Neeraj Gupta, MD, Branch International, a fintech app.
It is noteworthy that cardless cash withdrawals at ATMs were enabled in 2023 via UPI.
These are the key points you need to know:
1. As of now, the RBI has announced that depositors can use UPI to deposit cash at cash deposit machines installed at ATMs and banks. The RBI is yet to share more details on this.
2. To carry out cardless cash withdrawal, these are the steps one has to follow:
A. Choose the option of UPI cash withdrawal on the ATM machine.
B. Enter the amount you want to withdraw
C. A QR code will be shown on the ATM.
D. Open the UPI app on your mobile phone and scan the QR code displayed on the machine.
3. The RBI has rolled out this facility to enhance customer experience and to make the currency handling process at banks more efficient.
Based on these steps, one can understand that the steps that one needs to follow will be similar, if not the same to deposit the cash as well.
So, when the new set of rules comes into force, this could be the expected set of steps to take:
These could be the likely set of steps:
1. Enter the ATM/ bank branch which has a cash deposit machine carrying your smartphone and wads of notes that you want to deposit. By now, you must have understood that what you do not need to carry is the debit card.
2. Look for the UPI cash deposit option at the ATM.
3. Enter the correct amount that you want to deposit which will lead to the display of a QR code on the screen.
4. Open the UPI app on your phone and scan this QR code displayed on the screen of CDM.
5. Keep the currency notes inside the vent for the machine to count and accept.
6. Transaction will be completed and will be duly acknowledged at the machine as well as in your UPI app.
It is worth remembering that the RBI will soon release the instructions for the newly announced facility.
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Published: 05 Apr 2024, 07:44 PM IST