RBI’s Latest Move: Cash Deposits in Banks via UPI

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The Reserve Bank of India (RBI) has unveiled a significant initiative that will revolutionize banking transactions by enabling cash deposits through the popular Unified Payments Interface (UPI). This announcement was made during the first bi-monthly monetary policy of the current financial year by RBI Governor Shaktikanta Das.

The decision to introduce cash deposit facilities via UPI is a major step towards enhancing customer convenience and reducing the cash-handling load on bank branches. Governor Das highlighted the widespread popularity and acceptance of UPI, citing the success of UPI-enabled card-less cash withdrawals at ATMs as a testament to its benefits.

Currently, cash deposit machines (CDMs) at banks only accept deposits through debit cards. However, with the integration of UPI, customers will soon have the option to deposit cash directly into their bank accounts using their mobile phones and UPI-enabled apps.

In addition to facilitating cash deposits via UPI, the RBI has also announced plans to allow Prepaid Payment Instruments (PPIs) to be linked through third-party UPI applications. This move aims to provide more flexibility to PPI holders, allowing them to make UPI payments just like bank account holders.

This development comes as a boon for users, as it opens up new avenues for seamless and convenient digital transactions. Operational instructions for these initiatives will be issued shortly by the RBI, marking a significant stride towards promoting a cashless economy and enhancing digital payment infrastructure in India.

Sources By Agencies