Mumbai: RBI introduces proposal to allow UPI deposits at cash deposit machines Reserve Bank of India (RBI) Governor, Shaktikanta Das, unveiled a new proposal during the recent announcements by the RBI monetary policy committee. The proposal seeks to enable individuals to deposit money through Unified Payments Interface (UPI) at Cash Deposit Machines (CDMs).

CDMs, known for facilitating direct cash deposits into bank accounts via bank cards, will now offer the option to use UPI for depositing funds, as per the RBI's initiative. Shaktikanta Das emphasized the reasoning behind the proposal, citing the success of cardless cash withdrawal via UPI at ATMs. He stated, "Given the experience gained from cardless cash withdrawal using UPI at the ATMs, it is now proposed to facilitate deposit of cash in CDMs using UPI. This measure will further enhance customer convenience and make currency handling process at banks more efficient."

Furthermore, the RBI proposed permitting the use of third-party UPI apps for making UPI payments from Prepaid Payment Instruments (PPI) wallets. This move is intended to augment customer convenience and encourage the adoption of digital payments for small value transactions.

In other announcements, the RBI opted to maintain the repo rate at 6.5 percent following a three-day meeting of the RBI’s monetary policy committee held from April 3 to 5. Additionally, the RBI projected a retail inflation rate of 4.5 percent for the fiscal year 2024-25, with specific rates forecasted for each quarter.

ALSO READ: Bandhan Bank CEO stepped down