The Reserve Bank of India (RBI) has introduced an innovative feature called UPI Interoperable Cash Deposit (UPI-ICD), allowing customers to deposit cash at ATMs using the Unified Payments Interface (UPI) without the need for a debit card. This new capability was announced by RBI Deputy Governor T Rabi Sankar at the Global Fintech Fest 2024.
UPI-ICD enables customers to perform cash deposits at ATMs equipped with this technology. These ATMs, known as cash recycler machines, are designed to handle both deposits and withdrawals, streamlining the process of managing cash.
How UPI-ICD Works
With UPI-ICD, customers can use their mobile numbers linked to UPI, Virtual Payment Addresses (VPA), or bank account IFSC codes to deposit cash. The deposited amount can be credited directly to the customer’s own bank account or to another designated account.
The National Payments Corporation of India (NPCI) explains, “UPI ICD enables cash deposits at ATMs operated by banks and white label ATM operators (WLAOs) using UPI, eliminating the need for a physical card. These ATMs, which function as cash recycler machines, support both cash deposits and withdrawals. By utilising mobile numbers linked to UPI, VPA, and account IFSCs, customers can deposit cash more seamlessly and inclusively.”
Steps to Use UPI-ICD
- Locate a Compatible ATM: Find an ATM that supports UPI-ICD functionality.
- Select the Deposit Option: Choose the cash deposit option on the ATM’s screen.
- Enter Your Details: Input your mobile number linked to UPI, VPA, or your bank’s IFSC code.
- Deposit the Cash: Place the cash into the ATM’s deposit slot. The machine will process the deposit and credit the amount to your linked account.
This feature is being rolled out gradually across banks, enhancing the convenience and accessibility of cash deposits for customers.
