The Reserve Bank of India (RBI) has proposed allowing cash deposit facility at Cash Deposit Machines (CDMs) through UPI, which is currently available only through the use of debit cards.
The initiative has been taken given the popularity and acceptance of UPI, as also the benefits seen from the availability of UPI for card-less cash withdrawal at ATMs, RBI said, adding that operational instructions will be issued shortly.
“Currently, to access the cash deposit facility, the user must insert his/her debit card, enter the PIN and select ‘deposit’ to complete the cash deposition process at the ATM or CDM. Going ahead, this will be a card-less process, all that the user will need, is UPI enabled on that bank account. This will make the banking transaction-CDM as easy as making payments via UPI,” said Mandar Agashe, Founder and MD, Sarvatra Technologies.
CDMs deployed by banks enhance customer convenience while reducing cash-handling load on bank branches. Allowing UPI will further enhance customer convenience and make the currency handling process at banks more efficient, Governor Shaktikanta Das said.
“Given the large scale acceptance of UPI, this will empower consumers with seamless deposit options but also present a promising opportunity for fintechs to leverage technology for the betterment of financial services.,” said Ashish Goyal, Co-founder and CFO, Fibe.
In March 2024, businessline reported that ATM ecosystem players are considering adopting UPI for cash deposits and collaborating with the RBI and NPCI to explore the feasibility of UPI-based deposits. Unlike ATMs, which only dispense cash, Cash Deposit Machines (CDMs) or Cash Recycler Machines (CRMs) can both dispense and accept cash deposits.
Ravi B Goyal, Chairman and MD, AGS Transact Technologies, said this will also serve as a catalyst in fostering the widespread adoption of CRMs in the country. “By enabling customers to perform both cash withdrawal and deposit transactions using UPI on the same platform, empowers them with enhanced accessibility and efficiency.”