Cardless Cash

The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) have recently launched a groundbreaking feature aimed at enhancing the convenience of banking with a focus on cardless cash transactions. This new feature, part of the Unified Payments Interface (UPI) system, allows customers to make cash deposits at ATMs without the need for debit cards or any other physical cards. The UPI Interoperable Cash Deposit (UPI-ICD) feature was introduced by RBI Deputy Governor T Rabi Shankar at the Global Fintech Fest (GFF) 2024 in Mumbai on August 29.

With UPI-ICD, customers can now perform cardless cash deposits at select ATMs, specifically those equipped as cash-recycler machines. This feature builds on the cardless cash withdrawal option that was introduced via UPI in 2023. By leveraging UPI, users can deposit cash into their own or another’s bank account using their mobile number linked to UPI, virtual payment addresses (VPA), and account IFSC codes, all without the need for a physical card.

This innovation is a significant step towards a more cardless banking experience, offering greater flexibility and convenience to users. The RBI first mentioned the UPI-ICD feature in April 2024, and it is now being gradually rolled out by banks across the country. This move is part of a broader effort by the RBI and NPCI to promote cardless banking and expand the reach of digital payments.

Additionally, the RBI is upgrading ATMs to function as digital banking units (DBUs), allowing customers to perform various banking activities such as opening accounts, applying for credit cards, initiating fixed deposits, and more, all in a cardless manner.

The UPI platform continues to be a key driver of India’s move towards cardless transactions, supporting a wide range of financial activities from peer-to-peer payments to bill payments and merchant transactions. The introduction of UPI-ICD reinforces the cardless infrastructure and aligns with the ongoing efforts to digitize and simplify banking in India.

In related news, RBI Governor Shaktikanta Das announced the “UPI Circle” feature, which enables users to share their primary UPI credentials with trusted secondary users, such as family members or friends, allowing them to make payments from the same account—further extending the scope of cardless transactions.

Reference: Indian Express Article