The Unified Payment Interface (UPI) was introduced in 2016 to transfer money from one bank account to another using the UPI ID linked to a registered mobile number, bypassing the need for entering details like the account number, IFSC code, branch address, etc. One can also withdraw money from bank ATMs using UPI. However, now, customers can deposit cash using UPI, too.

On August 29, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) unveiled a feature that allows customers to deposit cash at bank cash deposit machines via the UPI app without using a debit card, called the UPI interoperable cash deposit (ICD).

Also Read: Majority Of Users To Stop UPI Payments If Transaction Fee Is Levied: Report

Which Banks Are Offering Cardless Cash Deposits Via UPI?

Initially, the Union Bank of India (UBI) and the Axis Bank are providing the facility, but more banks are soon expected to follow suit.

UBI introduced the UPI ICD in cash recycler machines (CRMs) or cash deposit machines (CDMs) to offer cardless deposits for both self and third parties and interoperability. Its customers can deposit cash in CDMs with any UPI ICD-enabled app. According to its website, Axis Bank launched the feature the same day the RBI announced the facility.

How To Deposit Cash Through UPI ICD?

Find A UPI ICD-Enabled Cash Deposit Machine: First, find a UPI ICD-enabled cash deposit machine (CDM).

Select Cash Deposit Option: Select the ‘UPI cash deposit’ option in CDM or CRM.

Scan The QR Code: A dynamic QR code will be displayed on the screen, which the customers will need to scan via the UPI app to deposit cash into CDM or CRM.

Also Read: Federal Bank Revises FD Rates Up To 7.90% For Seniors: Know Details

Select The Beneficiary: Select the mobile number, UPI ID, or bank account number and IFSC details of the beneficiary.

Authenticate Transaction: Then, authorise the transaction with UPI PIN.

Deposit Physical Cash: After authenticating the beneficiary details, deposit cash in the machine, which means put the cash in the cash slot of the machine. The machine will count and verify and then process the transaction and credit the amount in the account.

Note that the NPCI has restricted such cash deposit limit to less than Rs 50,000 per transaction. Further, the banks may define their limits for such transactions, reads the NPCI website.

So, customers will now only need to carry a mobile phone with an UPI ICD enabled app to deposit or withdraw cash from bank ATMs and CDMs. It removes the need to carry a debit card or the ATM card remember the passwords for transactions, offering convenience to customers.