UPI new rule - UPI Cardless cash deposits
UPI new rule: Many ATMs currently offer cardless cash withdrawal capabilities, enabling UPI users to take out cash without using a debit card. The RBI Governor announced today that the UPI cash deposit function will soon start.
On Friday, Reserve Bank of India Governor Shaktikanta Das unveiled a proposal to deposit money in cash deposit machines (CDMs) using Unified Payments Interface (UPI), following the success of cardless cash withdrawal through UPI at ATMs.
After the three-day Monetary Policy Committee (MPC) meeting, Das made an address to the media and stated, "Debit card usage is the main method used for cash deposits through CDMs. It is now suggested to make it easier to deposit cash into CDMs using UPI in light of the experience obtained from card-less cash withdrawals at ATMs using UPI. This action will improve client convenience even further and streamline banks' cash handling procedures.
He also mentioned that the new facility's operating instructions would be released shortly.
The governor of the RBI also suggested permitting UPI payments from prepaid payment methods (like wallets) via third-party apps.
"At this time, the only way to make UPI payments from prepaid payment instruments (PPIs) is through the PPI issuer's website or mobile app. The usage of third-party UPI apps to make UPI payments using PPI wallets is now suggested to be allowed," Das stated.
How does a cash deposit facility based on UPI operate?
Nowadays, debit cards can be scanned by cash deposit machines. Customers will soon have the choice to use UPI rather than debit cards. They can successfully deposit their money by inserting it into a slot or tray after scanning the QR code.
Many ATMs currently offer cardless cash withdrawal, enabling UPI users to take out cash without using a debit card.
How do ATM cash withdrawals using UPI operate?
- Choose 'UPI cash withdrawal' when you visit an ATM.
- Enter the withdrawal amount.
- There will be a QR code visible on the screen.
- Use a PIN to authorize the transaction after scanning the QR code on UPI.
- Your cash will be dispensed by the ATM upon successful payment.
The National Payments Corporation of India (NPCI) created the quick payment system known as United Payments Interface, or UPI. UPI was introduced in 2016 and is currently accessible in Nepal, Bhutan, France, the United Arab Emirates, Sri Lanka, and Mauritius.
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