ATM Cash Deposit Using UPI: How Will It Work?
In a press release dated August 29, 2024, the National Payments Corporation of India (NPCI) states, “The introduction of UPI ICD enables customers to deposit cash at bank-operated ATMs and White Label ATM Operators (WLAOs) using UPI into their bank account or any other bank account without the need for a physical card. These ATMs are cash-recycling machines used for both cash deposits and withdrawals. Leveraging their UPI-linked mobile numbers, Virtual Payment Addresses (VPAs), and IFSC accounts, customers can now make cash deposits, making the process simpler, more inclusive, and more accessible.”
According to many experts, UPI Cardless Cash Deposit will be similar to UPI Cardless Cash Withdrawal. Currently, you can deposit cash in cash deposit machines primarily using your debit card, either in banks or ATMs. With the announcement of UPI Cardless Cash Deposit, you no longer need to carry a debit card to deposit cash in ATM cash deposit machines.
Mandar Agashe, Founder and Managing Director, Sarvatra Technologies Pvt Ltd, says, “UPI-enabling the cash deposit feature is another notable use case of UPI. Currently, to access the cash deposit feature, the user needs to insert his debit card, enter the PIN and select ‘deposit’ to complete the cash deposit process at the ATM or CDM. In future, this will be a cardless process; all the user will need is to have UPI enabled on that bank account. This will make the bank-CDM transaction as easy as making payments through UPI.”
How to deposit cash using UPI Interoperable Cash Deposit (UPI-ICD)
Taking UPI cardless cash withdrawal as a reference, here are the expected steps for ATM cash deposits using UPI, ICICI Direct mentions in a blog post. A look at the step-by-step guideStep 1: Look for a Cash Deposit Machine (CDM) that supports UPI transactions. At CDM, you will probably choose the “UPI Cash Deposit” instead of using a debit card.
Step 2: A QR code will appear on the CDM screen.
Step 3: Open the UPI app on your smartphone to scan the QR code displayed by the CDM.
Step 4: The UPI app will display the deposit amount detected by the CDM. Please verify that it matches the cash you are depositing.
Step 5: Select the bank account you want to deposit the cash into from your UPI-linked accounts. Then, authorize the transaction using your UPI PIN.
You may be asked to enter the number of notes of each denomination (e.g. Rs 100 notes, Rs 500 notes) that you are depositing. CDM may provide you with a confirmation voucher of your successful cash deposit.
When will UPI interoperable cash deposit facility be available at ATMs?
Consumers will be able to access these features as banks gradually roll them out, NPCI says.
Vivek Iyer, Partner, Grant Thornton Bharat, says, “Enabling UPI for cash deposits is the RBI’s objective to integrate UPI as part of the entire financial services value chain, given the positive level of customer experience and the ease for which UPI is known.”
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