Reserve Bank of India Governor Shaktikanta Das on Friday proposed to enable UPI for cash deposit facility.
UPI representation image
Reserve Bank of India Governor Shaktikanta Das on Friday proposed to enable UPI for cash deposit facility.
Notably, the deposit of cash through Cash Deposit Machines (CDMs) is primarily being done through the use of debit cards.
“Given the experience gained from card-less cash withdrawal using UPI at the ATMs, it is now proposed to also facilitate deposit of cash in CDMs using UPI,” the RBI Governor announced.
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“This measure will further enhance customer convenience and make the currency handling process at banks more efficient,” he added.
The operational instructions for the use of UPI for deposit through Cash Deposit Machines will be issued shortly by the central bank.
Cash Deposit Machines deployed by banks enhance customer convenience while reducing cash-handling load on bank branches. Deposit of cash through CDMs is primarily being done through the use of debit cards.
Another key update on the use of UPI by the Governor was to permit the use of third-party UPI apps for making UPI payments from Prepaid Payment Instruments (PPI) wallets.
At present, UPI payments from PPIs can be made only by using the web or mobile app provided by the PPI issuer.
“It is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI wallets. This will further enhance customer convenience and boost adoption of digital payments for small value transactions,” Governor Das said.
At present, UPI payments from bank accounts can be made by linking a bank account through the UPI App of the bank or using any third-party UPI application. However, the same facility is not available for PPIs.
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