In along with depositing cash at ATMs using UPI, users can now make payments using prepaid payment instruments through third-party applications that deposit cash via UPI, according to the Reserve Bank Governor.
Users can now use UPI (Unified Payments Interface) to make card-less deposits, according to a statement from the Reserve Bank of India (RBI). This innovation improves the efficiency of the currency handling procedure at banks by enabling customers to deposit cash at ATMs and make payments using prepaid payment instruments through third-party applications.
Expanding the UPI (Unified Payments Interface)
Prepaid payment instruments (PPI) or wallets could previously only be accessed via websites or applications that the PPI issuers offered. However, wallets can now be easily incorporated into the UPI ecosystem thanks to the launch of card-less deposits via UPI. Users now have more ways to use UPI to make payments: they can link their wallet, credit card, and bank account to the platform. This action is anticipated to significantly accelerate the development of fintech businesses and create new opportunities for convenience and innovation in the field of digital payments.
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The Benefits of Deposits Without a Card
In the past, customers needed to insert their debit card, enter their PIN, and choose the “deposit” option in order to use the cash deposit feature at ATMs. But now that UPI has enabled the new card-less deposit method, consumers can benefit from a more efficient and trouble-free experience. To deposit cash, they are no longer required to carry their debit cards or keep track of their PINs. Instead, customers may easily start the deposit procedure using their bank account that supports UPI, which would streamline and improve the convenience of the entire transaction.
The successful launch of card-less cash withdrawals via UPI at ATMs is extended by this new service. The RBI has now added the ability for customers to utilize UPI to deposit cash at Cash Deposit Machines (CDMs), building on this experience. The purpose of this action is to improve customer convenience and the way banks handle currencies in general.
The Benefits of UPI for Cash Deposits
Millions of people choose UPI as their preferred payment option due to its continually rising user popularity. The RBI is giving consumers more options and flexibility by allowing cash deposits through UPI, capitalizing on the huge usage of this payment mechanism. With no need for extra cards or authentication procedures, users may now experience the simplicity of making cash deposits using the same UPI interface they are currently accustomed with.
