In a major development that is set to make cash transactions more convenient, the Reserve Bank of India’s (RBI) Deputy Governor, T Rabi Sankar, launched the UPI Interoperable Cash Deposit (UPI-ICD) at the Global Fintech Fest 2024 on August 29. This new concept created by National Payments Corporation of India (NPCI) will enable customers to deposit cash into their own bank accounts or any other bank accounts using UPI at ATMs without the use of a debit card.
How UPI-ICD Works?
The UPI-ICD feature is aimed at making cash deposit through ATM process more convenient and easy to use. Here’s how it works:
1. Locate an ATM: Customers have to look for an ATM that has cash recycler machines that support UPI-ICD for them to be able to transact.
2. Initiate the Deposit: On the ATM screen, highlight the cash deposit option and press OK.
3. Enter Mobile Number or VPA: Enter the mobile number associated with the UPI ID, VPA or Account IFSC code.
4. Deposit Cash: Place the cash into the slot, and it will be debited to the selected bank account.
Customers no longer have to bring their debit cards to deposit their cash, which makes it easier and more convenient, and it will also reduce the use of physical cards. This feature is a security measure that will decrease the rate of card related frauds. The UPI-ICD feature fits into the already existing UPI cardless cash withdrawal system and is seamless for the customers.
This process utilises the UPI technology to enable cardless transactions, thus making it easier and secure to deposit cash.
The NPCI has said that the UPI-ICD feature will be launched in a phased manner by banks. This implies that customers should be ready to start using this facility in the following months as more ATMs are fitted with the right technology.
