Soon, you can deposit cash using UPI at ATMs: RBI

Users will soon be able to deposit cash using UPI at ATMs. The RBI, in its statement on developmental and regulatory policies today, says operational instructions, in this regard, will be issued shortly.

The facility of depositing cash using UPI at ATMs is an extension of the RBI's earlier measure of cardless cash withdrawal at ATMs.

The RBI says given the popularity and acceptance of UPI, as well as the benefits seen for cardless cash withdrawal at ATMs, it is now proposed to facilitate a cash deposit facility through the use of UPI.

"Cash deposit machines (CDMs) deployed by banks enhance customer convenience while reducing the cash-handling load on bank branches. The facility of cash deposit is presently available only through the use of debit cards."

At present, one can withdraw cash using UPI by choosing the UPI cardless cash option on the ATM screen and scanning the dynamic QR code.

The central bank has also allowed UPI access for prepaid payment instruments (PPIs) via third-party applications. The move is aimed at providing flexibility to PPI holders by enabling them to make UPI payments like bank account holders.

At present, UPI payments from bank accounts can be made by linking a bank account through the UPI app of the bank or using any third-party UPI application. However, the facility is not available for PPIs. PPIs can currently be used to make UPI transactions only by using the application provided by the PPI issuer.

"To provide more flexibility to PPI holders, it is now proposed to permit linking of PPIs through third-party UPI applications. This will enable the PPI holders to make UPI payments like bank account holders. Instructions in this regard will be issued shortly."

The RBI has also proposed the distribution of CBDCs through non-bank payment system operators to enhance access and expand choices available to users. It will also help test the resiliency of the CBDC platform to handle multi-channel transactions.

As per the central bank, CBDC pilots in the retail and wholesale segments are underway with more use cases and more participating banks. "Continuing with this approach, it is proposed to make CBDC-Retail accessible to a broader segment of users in a sustained manner, by enabling non-bank payment system operators to offer CBDC wallets," says the RBI.

Additionally, the RBI has said it is developing a mobile application for a mobile application of the retail direct portal to enable investors to buy and sell instruments on the go. The app will be available for use shortly, says the RBI.

The RBI's Retail Direct Scheme, launched in November 2021, gives access to individual investors to maintain gilt accounts with RBI and invest in government securities. Investors can buy securities in primary auctions as well as buy/sell securities through the NDS-OM platform.