The RBI has allowed cash deposits through UPI in CDMs, which are currently being done primarily through the use of debit cards.
New Delhi: In a major development and good news for bank customers, the Reserve Bank of India has decided to allow customers to deposit money in Cash Deposit Machines (CDMs) through UPI. The decision of the central bank comes as part of its policy to enhance convenience in carrying out transactions. For the unversed, cash deposits through CDMs are currently being done primarily through the use of debit cards.
Advantages Of Using UPI For Depositing Money In CDMs
“Given the experience gained from card-less cash withdrawal using UPI at the ATMs, it is now proposed to also facilitate the deposit of cash in CDMs using UPI. This measure will further enhance customer convenience and make the currency handling process at banks more efficient,” Das explained.
RBI Governor Shati Kant Das has said that apart from making things easier for customers, banks would also benefit, as they currently spend a lot of time dealing with cash deposits at their branches.
The RBI has also decided to permit small finance banks (SFBs) to use permissible rupee interest derivative products for hedging their interest rate risk and enhancing their resilience. At present, SFBs are allowed to use only Interest Rate Futures (IRFs) for proprietary hedging.
RBI Allows Use of 3rd Party UPI Apps For Payments From PPI Wallets
The RBI has decided to permit the use of third-party UPI apps for making UPI payments from PPI wallets to further enhance customer convenience and boost adoption of digital payments for small value transactions, RBI Governor Shaktikanta Das said on Friday.
At present, UPI payments from Prepaid Payment Instruments (PPIs) can be made only by using the web or mobile app provided by the PPI issuer. The use of third-party UPI apps will give users more flexibility and make it easier for them to make payments. This will accelerate the growth of digital payments in the economy.
The RBI Governor also said that it has been decided to distribute Central Bank Digital Currency (CBDC) through non-bank payment system operators to make CBDC-Retail accessible to a broader segment of users.
The CBDC pilots are currently in operation due to the increasing number of use cases and participating banks. The new measure will enable non-bank payment system operators to offer CBDC wallets. This will also facilitate testing of the resiliency of the CBDC platform to handle multi-channel transactions, Das added.
(With inputs from agencies)