The Reserve Bank of India launched the UPI Interoperable Cash Deposit (UPI-ICD) feature at the Global Fintech Fest (GFF) 2024 held in Mumbai, Maharashtra.
The feature was launched by T Rabi Shankar, the deputy governor of the RBI, along with the National Payments Corporation of India (NPCI).
UPI-ICD allows customers to deposit cash at ATMs operated by banks and white-label ATM operators using UPI, eliminating the need for a physical card.
UPI-ICD leverages a customer’s mobile number linked to UPI, virtual payment addresses (VPA), and account IFSCs, allowing them to deposit cash either in their own account or any other bank account, according to a press release by the National Payments Corporation of India (NCPI), which operates UPI.
With UPI-ICD, customers have the option of cardless cash deposits via UPI. However, the feature is only available at ATMs that can be used to deposit and withdraw cash (cash-recycler machines). Cardless cash withdrawals via UPI had been enabled back in 2023.
“These ATMs are cash recycler machines which are used for both cash deposits and withdrawals. Leveraging their mobile numbers linked to UPI, virtual payment addresses (VPA) and account IFSCs, customers can now do cash deposits, making the process more seamless, inclusive and accessible,” the NPCI said in a statement.
On the other hand, ATMs with open architecture can host bank apps, positioning them as DBUs. A DBU offers services beyond deposits and withdrawals, including opening bank accounts, applying for credit cards, and more.
