Cash deposits are possible at ATMs now without any physical card! The Reserve Bank of India (RBI) has launched a new feature allowing bank customers to deposit cash at bank ATMs without debit card and PIN. Customers can deposit cash at ATMs using Unified Payments Interface (UPI) apps through cash deposit machines (CDMs).

This new UPI interoperable cash deposit (UPI-ICD) feature was recently introduced by RBI Deputy Governor T Rabi Sankar at the Global Fintech Fest (GFF) 2024.

At present, customers have two options to deposit cash in bank accounts: Visiting a bank branch or at an ATM by using your debit card.

The first one, visiting a bank branch, is the traditional way of depositing cash in one’s bank account. You just need to go to your nearest bank branch and fill a deposit form and hand it over to the bank representative at the counter along with cash you want to deposit.

The ATM method is comparatively new and was started just a few years ago. It works in the same way as cash withdrawal facility. You have to go to nearest ATM carrying a debit card to complete the transaction.

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How does the new UPI method to deposit cash work?

“The introduction of UPI ICD allows customers to deposit cash at ATMs operated by banks and white label ATM operators (WLAOs) using UPI to their own bank account or any other bank account without the need for a physical card,” according to an NPCI release.

When will consumers be able to access the new UPI interoperable cash deposit features as banks gradually roll them out?

They will soon be able to access these features as the banks are expected to roll them out gradually.

“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 statement said.

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Steps to use the UPI feature for depositing cash:

Step 1: Go to a Cash Deposit Machine (CDM) that supports UPI transactions.

Step 2: Choose the option for “UPI Cash Deposit”.

Step 2: Scan QR code on the CDM with the UPI App.

Step 3: Enter the number of currency notes for each denomination (like Rs 100, Rs 500).

Step 4: Cash deposit amount will be shown in the UPI app.

Step 5: Verify the amount being deposited through the app.

Step 5: In the next step, you need to select the receiving bank account from the list of your UPI-linked accounts.

Step 6: Authorise the transaction with the UPI PIN.

Step 7: The CDM may issue a confirmation slip for successful cash deposit.