You might have been using UPI for cash withdrawal at ATMs of State Bank of India (SBI), HDFC Bank, Axis Bank, ICICI Bank and other banks. Soon, you would be able to deposit cash at ATMs with UPI also. The Reserve Bank of India (RBI) has decided to enable cash deposit facility at ATMs through UPI.

“Cash Deposit Machines (CDMs) deployed by banks enhance customer convenience while reducing cash-handling load on bank branches. The facility of cash deposit is presently available only through use of debit cards,” RBI said in its bi-monthly “Statement on Developmental and Regulatory Policies” on Friday (April 5).

“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 central bank added.

Operational instructions to enabling cash deposit at ATMs through UPI will be announced soon.

UPI for PPIs through third-party apps

Meanwhile, the central bank has also decided to allow UPI access for Prepaid Payment Instruments (PPIs) through third-party applications.

Currently, 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, RBI noted that the same facility is not available for PPIs.

“PPIs can currently be used to make UPI transactions only by using the application provided by the PPI issuer. To provide more flexibility to PPI holders, it is now proposed to permit linking of PPIs through third-party UPI applications,” RBI said.

The UPI access for PPIs through third-party apps will enable the PPI holders to make UPI payments like bank account holders. The RBI will issue further instructions in this regard soon.

The RBI today also decided to keep the Repo Rate unchanged for the 7th time in a row.

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