Discover how the RBI's new UPI-ICD feature is set to transform cash deposits at ATMs. Deposit cash directly into your bank account using UPI apps, eliminating the need for physical cards. Learn about this revolutionary feature and how it's simplifying banking in India.

In a move set to transform the way Indians handle cash, the Reserve Bank of India (RBI) has unveiled a groundbreaking feature that permits users to deposit cash in ATMs using UPI. This innovation, showcased at the Global Fintech Fest 2024, marks a significant step towards a cashless society by eliminating the need for debit cards during cash deposits.

UPI-ICD: Bridging the Gap Between Cash and Digital Payments

The new feature launched by RBI, aptly named UPI Interoperable Cash Deposit (UPI-ICD), empowers customers to effortlessly deposit cash at ATMs operated by both banks and white label ATM operators (WLAOs) directly through their UPI apps. This not only does away with the necessity of carrying a physical card but also streamlines the cash deposit process, making it more user-friendly and accessible.

Seamless Cash Deposits: A Step-by-Step Guide

How does the new feature of using UPI apps to deposit cash work?

Locate a Cash Deposit Machine (CDM) equipped with UPI transaction capabilities and opt for the “UPI Cash Deposit” option on the screen.
Scan the QR code displayed on the CDM using your UPI-enabled mobile application.
Input the precise number of bills for each denomination (e.g., ₹100, ₹500). The CDM might generate a confirmation slip for your records.
The UPI app will then present the total deposit amount. It’s crucial to verify this against the actual cash you intend to deposit to prevent any discrepancies.
Choose the specific bank account where you wish to deposit the cash from the list of your UPI-linked accounts. Finally, authorize the transaction securely with your UPI PIN.

A Leap Towards Financial Inclusion

This pioneering feature is poised to make cash deposits considerably more convenient and inclusive, particularly benefiting individuals who might not possess debit cards or prefer digital transactions. As banks progressively implement this functionality across their ATM networks, users can anticipate a smoother and more efficient cash deposit experience.

Beyond Convenience: The Broader Implications

The introduction of UPI-ICD signifies more than just added convenience. It represents a significant stride towards bridging the gap between cash and digital payments, fostering greater financial inclusion, and promoting the adoption of digital payment methods across the country.

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Mahak Aggarwal

With a BA in Mass Communication from Symbiosis, Pune, and 5 years of experience, Mahak brings compelling tech stories to life. Her engaging style has won her the 'Rising Star in Tech Journalism' award at a recent media conclave. Her in-depth research and engaging writing style make her pieces both informative and captivating, providing readers with valuable insights.