On April 5, the Reserve Bank of India (RBI) announced a new policy allowing cash deposits at cash deposit machines (CDMs) in ATMs using UPI.
Reserve Bank of India (RBI) announced a new policy on April 5, allowing UPI users to deposit cash at Cash Deposit Machines (CDMs) in ATMs. Governor Shaktikanta Das made the statement to the public during the bi-monthly monetary policy committee (MPC) meeting.
“Deposit of cash through Cash Deposit Machines (CDMs) is primarily being done through the use of debit cards. Given the experience gained from card-less cash withdrawal using UPI at the ATMs, it is now proposed to also facilitate deposit of cash in CDMs using UPI,” Governor Das said.
“This measure will further enhance customer convenience and make the currency handling process at banks more efficient,” Governor Das added.
The evolution of UPI is empowering millions in India by providing an easy and hassle-free way to transfer money online. Now, this service will also be applicable to offline money deposits at ATMs.
In 2023, the RBI also started allowing UPI users to withdraw money using UPI at ATMs. The current trend suggests a move towards a card-free India, where UPI might soon replace debit and credit cards.
The MPC also planned to introduce a specific mobile application for accessing the Retail Direct portal. Governor Das highlighted the advantages of the app, believing that it can make it more convenient for retail investors to reach the government securities market (G-sec).
The Retail Direct Scheme was launched by RBI in 2021, to encourage the participation of retail and individual investors in the government securities market.
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