In a major step towards financial inclusion, customers can now make cardless cash deposits directly into their bank accounts or any other account using the Unified Payments Interface (UPI). The Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI) jointly launched the UPI Interoperable Cash Deposit (UPI-ICD) feature, allowing consumers to deposit money without requiring debit cards or other physical payment instruments.
Deputy Governor of RBI T Rabi Shankar unveiled UPI-ICD at the Global Fintech Fest held recently in Mumbai. Through this feature, customers utilize their UPI app on their mobile device linked to their bank account and IFSC code to directly transfer cash amounts into their account from automated teller machines (ATMs) equipped with cash deposit facilities. Banks will progressively roll out this solution on their ATM networks.
Previously, only card-based cash deposits were possible at ATMs. But with UPI-ICD, individuals have a convenient digital option to put funds into their accounts using just their mobile phone and UPI virtual payment address (VPA). RBI had signaled the launch of this facility earlier this year to promote accessibility and ease of transactions.
In addition, the central bank is enhancing ATMs to function as digital banking units, allowing users to perform banking activities like account opening, credit card application, and fixed deposit creation through the machines. These developments form part of RBI and NPCI's continuing mission to broaden the outreach of UPI as the backbone for digital payments across India.
