Cash deposits via UPI to get nod

THE RESERVE BANK of India will facilitate cash deposit in banks through the Unified Payments Interface (UPI). Currently, the facility of cash deposit is available only through debit cards.

- AJAY RAMANATHAN

"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 use of UPI," the RBI said.

In September, Hitachi Payment Services, a subsidiary of Hitachi, had launched UPI-ATM, which allows users to withdraw cash without using debit card or credit card. The managing director and cash business CEO, Sumil Vikamsey, had told FE that the company was also considering an interoperable card-less cash deposit facility that will run on the UPI rails.

Experts feel that the RBI's latest announcement will serve as a catalyst in fostering the widespread adoption of cash recycler machines in India.