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Unified Payments Interface is a real-time payment system developed by the National Payments Corporation of India. (Representative image)
UPI has gained huge popularity due to its convenience, speed, and interoperability and has contributed to the growth of digital payments in the country.
Reserve Bank of India Governor Shaktikanta Das on Friday announced a proposal for a new UPI-based cash deposit scheme. The announcement came during the release of the first monetary policy statement for the financial year 2024-25.
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UPI has been mainly used for peer-to-peer transactions, bill payments, merchant transactions, and other digital payments. With the latest announcement, you can now use UPI to deposit cash at a cash deposit machine (CDM) instead of an ATM/debit card.
UPI has gained great popularity in India due to its convenience, speed and interoperability and has contributed to the growth of digital payments in the country.
The RBI is likely to release more details on how this system will work in the future.
Enable UPI for Cash Deposit Facility
The RBI Governor said that the CDM deployed by the bank improves customer convenience while reducing cash handling burden on bank branches. Cash deposit functionality is currently only available via debit card.
“Considering the popularity and acceptance of UPI and availability of UPI for cardless cash withdrawal from ATMs, it is now proposed to facilitate cash deposit facility using UPI. “Operation guidelines will be announced soon,” he added.
cash deposit machine
A cash deposit machine (CDM), or CDM, is an ATM that allows you to deposit cash directly into your bank account. This is a convenient way to deposit cash without having to visit a counter during business hours.
UPI
Unified Payments Interface is a real-time payment system developed by National Payments Corporation of India (NPCI). It facilitates instant fund transfers between two bank accounts on a mobile platform without requiring details about the recipient's bank account.
UPI simplifies the payment process by eliminating the need for traditional banking information such as account number, IFSC code, etc. Payments are initiated using a virtual payment address (VPA), mobile phone number, or QR code.
Apart from peer-to-peer transfers, UPI can also be used for utility bill payments, mobile recharges, and online purchases.