RBI to roll out money deposit facility by UPI

The Reserve Financial institution of India (RBI) has proposed permitting money deposit facility at Money Deposit Machines (CDMs) by UPI, which is at the moment obtainable solely by using debit playing cards.

The initiative has been taken given the recognition and acceptance of UPI, as additionally the advantages seen from the provision of UPI for card-less money withdrawal at ATMs, RBI mentioned, including that operational directions will probably be issued shortly.

“At present, to entry the money deposit facility, the person should insert his/her debit card, enter the PIN and choose ‘deposit’ to finish the money deposition course of on the ATM or CDM. Going forward, this will probably be a card-less course of, all that the person will want, is UPI enabled on that checking account. This may make the banking transaction-CDM as simple as making funds through UPI,” mentioned Mandar Agashe, Founder and MD, Sarvatra Applied sciences.

CDMs deployed by banks improve buyer comfort whereas decreasing cash-handling load on financial institution branches. Permitting UPI will additional improve buyer comfort and make the foreign money dealing with course of at banks extra environment friendly, Governor Shaktikanta Das mentioned.

“Given the big scale acceptance of UPI, it will empower customers with seamless deposit choices but additionally current a promising alternative for fintechs to leverage expertise for the betterment of economic companies.,” mentioned Ashish Goyal, Co-founder and CFO, Fibe.

In March 2024, businessline reported that ATM ecosystem gamers are contemplating adopting UPI for money deposits and collaborating with the RBI and NPCI to discover the feasibility of UPI-based deposits. Not like ATMs, which solely dispense money, Money Deposit Machines (CDMs) or Money Recycler Machines (CRMs) can each dispense and settle for money deposits.

Ravi B Goyal, Chairman and MD, AGS Transact Applied sciences, mentioned this may also function a catalyst in fostering the widespread adoption of CRMs within the nation. “By enabling prospects to carry out each money withdrawal and deposit transactions utilizing UPI on the identical platform, empowers them with enhanced accessibility and effectivity.”