Unified Payments Interface is an actual-time cost system developed by the National Payments Corporation of India. (Representative picture)
UPI has gained important reputation resulting from its comfort, velocity, and interoperability, contributing to the expansion of digital funds within the nation.
The Reserve Bank of India Governor Shaktikanta Das on Friday introduced a proposal for a brand new UPI-primarily based money deposit facility. This announcement got here through the unveiling of the primary financial coverage assertion for the fiscal 12 months 2024-25.
Also Read: RBI Announces Mobile App For Retail Direct Investors, Check Details About The Scheme
UPI has primarily been used for peer-to-peer transactions, invoice funds, service provider transactions and different digital funds. Now, with the newest announcement, it is possible for you to to deposit money at Cash Deposit Machines (CDMs) utilizing your UPI as an alternative of needing an ATM/debit card.
UPI has gained important reputation in India resulting from its comfort, velocity and interoperability, contributing to the expansion of digital funds within the nation.
The RBI will probably launch extra particulars on how this method will work sooner or later.
Enabling UPI for Cash Deposit Facility
RBI Governor mentioned that CDMs deployed by banks improve buyer comfort whereas lowering the money-dealing with load on financial institution branches. The facility of money deposit is presently obtainable solely by means of using debit playing cards.
“Given the popularity and acceptance of UPI, as also the benefits seen from the availability of UPI for card-less cash withdrawal at ATMs, it is now proposed to facilitate cash deposit facility through the use of UPI. Operational instructions will be issued shortly,” he added.
Cash Deposit Machines
Cash Deposit Machines or CDMs are ATMs that mean you can deposit money immediately into your checking account. They are a handy option to deposit money with out having to go to a teller throughout department hours.
UPI
Unified Payments Interface is an actual-time cost system developed by the National Payments Corporation of India (NPCI). It facilitates on the spot fund transfers between two financial institution accounts on a cellular platform, with out requiring particulars of the beneficiary’s checking account.
UPI simplifies the cost course of by eliminating the necessity for conventional banking particulars similar to account quantity, IFSC code, and so on. Payments are initiated utilizing digital cost addresses (VPAs), cellular numbers or QR codes.
Besides peer-to-peer transfers, UPI can be used for paying utility payments, cellular recharges, and making on-line purchases.
