![\"RBI's](\"https:\/\/c.ndtvimg.com\/2023-04\/lj34548_bank-generic_625x300_06_April_23.jpg\"\/ "\\"RBI's")
<\/div>\nRBI said it will soon facilitate cash deposit facility in banks through use of the popular UPI<\/p>\n<\/div>\n
Mumbai: <\/b><\/p>\n
In a major decision, the Reserve Bank said today that it will soon facilitate cash deposit facility in banks through use of the popular UPI, an instant real-time payment system for inter-bank transactions through mobile phones.<\/p>\n
The central bank also decided to permit linking of Prepaid Payment Instruments (PPIs) through third-party Unified Payments Interface (UPI) applications.<\/p>\n
Announcing the first bi-monthly monetary policy of the current financial year, RBI Governor Shaktikanta Das said that cash deposit machines (CDMs) deployed by banks enhance customer convenience while reducing cash-handling load on bank branches.<\/p>\n
The facility of cash deposit is presently available only through use of debit cards.<\/p>\n
“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,” Governor Das said.<\/p>\n
Operational instructions will be issued shortly, the RBI said.<\/p>\n
The RBI has also proposed to permit linking of PPIs through third-party UPI applications to provide more flexibility to users.<\/p>\n
At present, UPI payments from bank accounts can be made by linking a bank account through the UPI app of the bank or using any third-party UPI application. However, the same facility is not available for PPIs.<\/p>\n
PPIs can currently be used to make UPI transactions only by using the application provided by the PPI issuer.<\/p>\n
“To provide more flexibility to PPI holders, it is now proposed to permit linking of PPIs through third-party UPI applications. This will enable the PPI holders to make UPI payments like bank account holders,” the RBI said.<\/p>\n
Instructions in this regard too will be issued shortly.
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