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The Unified Payments Interface (UPI) has become a part of our daily lives, making it easy for us to make transactions over the past couple of years.

The Reserve Bank of India has developed a new feature that allows users to withdraw and deposit cash from their accounts without having a physical debit card or even their account number and IFSC number.

In the first bi-monthly committee meeting for FY24–25, RBI Governor Shaktikanta Das put forward allowing UPI apps to make payments and cash deposits at Cash Deposit Machines (CDMs).

The Governor said, "Deposits of cash through cash deposit machines (CDMs) are being done through the use of debit cards. Given the experience gained from cardless cash withdrawal using UPI at ATMs, it is now proposed to ease the deposit of cash in CDMs using UPI."

Customers can deposit money without the aid of a physical debit card via their United Payments Interface. With the popularity of UPIs related to cash withdrawals, the Reserve Bank of India has decided to make the service available for cardless cash deposits as well. 

The reason for this decision by the RBI was related to enhancing customer convenience and also making the currency handling processes at banks more efficient.

The governor said, "Enabling UPI for cash deposits is the RBI's focus towards integrating UPI as a part of the entire financial services value chain, given the positive level of customer experience and ease that UPI has been known for."

By eliminating the need for a physical debit card for cash deposits, the security measures at hand can be improved. This also allows customers to deposit cash anytime they want, even outside of banking hours.

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This Initiative By The RBI Offers Several Benefits

• It makes it convenient for the users, as they don’t have to carry a physical card or even remember the PIN to deposit the cash.

• It is accessible for people who don’t have access to their card or if they forgot it at home.

• The transaction needs the user’s UPI PIN. It is like an extra layer of protection compared to normal card transactions.

• It also gives instant confirmation if the transaction was complete or not, which will give the people peace of mind.

Steps To Deposit Cash Using UPI At An ATM,

• At the ATM, select the “UPI cashless deposit” option when presented on the screen before you.

• After this, choose and confirm the amount that you want to deposit, and also double-check the recipient and their bank details before proceeding with the transaction.

• A QR code will be displayed on your screen after this step. Use your mobile phone to scan the same. Ensure that your UPI app and your bank account are linked to avoid any hassle. In your UPI app, enter your UPI PIN to confirm the authentication.

• Once the transaction is authenticated and legitimised, follow the on-screen instructions and deposit your money into the tray or slot.

• Once finished, collect the receipt of the transaction as proof that your deposit using UPI is done.

This new feature will create a significant evolution in modern banking practices by adapting to the changes and trends in the world and catering to the changing needs of users while ensuring a convenient and secure banking experience.

By adopting cashless card deposits, India is stepping foot towards a digitalized nation.

For further queries and information, visit the NPCI website and learn more about cardless cash deposits using UPI.