Reserve Bank of India’s next big plan – depositing cash in banks via UPI.What does it mean

Reserve Bank of India (RBI) says it will soon provide cash deposit facility to banks by using popular UPI

Mumbai:

In a major decision, the Reserve Bank today said it will soon facilitate cash deposit facilities in banks by using the popular UPI, an instant real-time payments system for inter-bank transactions through mobile phones.

The central bank has also decided to allow linking of prepaid payment instruments (PPI) through third-party Unified Payments Interface (UPI) applications.

Announcing the first bi-monthly monetary policy of the current fiscal year, Reserve Bank of India Governor Shaktikanta Das said cash deposit machines (CDMs) deployed by banks have enhanced customer convenience while reducing the number of bank branches. cash handling burden.

Cash deposits are currently only available via debit card.

Governor Das said, “Given the popularity and acceptance of UPI and the benefits of UPI for cardless cash withdrawals at ATMs, it is now proposed to promote cash deposit facility through the use of UPI.”

The Reserve Bank of India said operational directives will be issued soon.

The RBI has also proposed allowing linking of PPI through third-party UPI applications to provide greater flexibility to users.

Currently, UPI payments from bank accounts can be made through the bank’s UPI app or any third-party UPI app by linking the bank account. However, the same facility does not apply to PPI.

Currently, UPI transactions can only be done through the application provided by the PPI issuer.

The Reserve Bank of India said: “To provide greater flexibility to PPI holders, it is now proposed to allow linking of PPI through third-party UPI applications. This will enable PPI holders to make UPI payments just like bank account holders. “

Instructions in this regard will also be issued soon.

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