Use UPI to deposit cash at cash machines now! Governor of the RBI Shaktikanta Das delivers a significant announcement

You may now use your UPI to deposit cash at cash deposit machines! On Friday, Shaktikanta Das, the governor of the Reserve Bank of India (RBI), said that UPI will henceforth be accepted for cash deposits at cash deposit machines.

The following announcement concerns the activation of the UPI cash deposit feature. Debit cards are the main method used to deposit cash using Cash Deposit Machines (CDMs),” he said.

“Given the experience gained from card-less cash withdrawal using UPI at the ATMs, it is now proposed to also facilitate the deposit of cash in CDMs using UPI,” said Shaktikanta Das. “This measure will further enhance customer convenience and make the currency handling process at banks more efficient,” he said.
This declaration was made by Shaktikanta Das as part of today’s policy statement from the RBI Monetary Policy Committee (MPC). During the policy meeting, the MPC, headed by the RBI governor, maintained the 6.5% key repo rate.
The RBI’s Statement on Developmental and Regulatory Policies emphasises how Cash Deposit Machines (CDMs) let banks handle less cash, which benefits customers and eases the pressure on branch banking operations. At this time, debit cards are the only way to access cash deposit services. A suggestion has been made to implement a cash deposit function using UPI, given the popularity and broad usage of UPI, as well as the benefits of allowing UPI for cardless cash withdrawals at ATMs. This initiative’s operational instructions will shortly be made available.
According to an ET story, you may now use UPI to withdraw cash from ATMs; the procedure is simple. You will be prompted to input the desired withdrawal amount on the ATM screen after choosing the “UPI cardless cash” withdrawal option. The screen will then display a one-time dynamic QR code that you need to scan using the mobile banking app of your choice from any bank. To get the cash after scanning, approve the transaction using your UPI PIN.
In addition, Shaktikanta made a significant revelation about third-party apps’ ability to use UPIs for prepaid payment instruments (PPIs). Currently, the only way to make UPI payments from Prepaid Payment Instruments (PPIs) is via the PPI issuer’s mobile app or website. It is now being suggested to allow UPI payments using PPI wallets via third-party UPI applications. According to him, this will increase consumer convenience and encourage the use of digital payments for low-value transactions.