RBI allows depositing cash at cash deposit machines through UPI

RBI Governor said that this will further enhance customer convenience and boost adoption of digital payments for small value transactions.

The Reserve Bank of India (RBI) on April 5 said it will allow depositing money in the cash deposit machines (CDMs) through Unified Payments Interface (UPI), Governor Shaktikanta Das said on April 5 while sharing the first policy outcome of FY25.

“Deposit of cash through Cash Deposit Machines (CDMs) is primarily being done through the use of debit cards. Given the experience gained from card-less cash withdrawal using UPI at the ATMs, it is now proposed to also facilitate deposit of cash in CDMs using UPI,” the RBI governor said.

Ashish Goyal, CoFounder & CFO, Fibe said: "Given the large scale acceptance of UPI, the move to enable UPI for cash deposit facilities will empower consumers with seamless deposit options but also present a promising opportunity for fintechs to leverage technology for the betterment of financial services."

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The measure would further enhance customer convenience and make the currency handling process at banks more efficient, Das said.

The Reserve Bank of India's monetary policy committee (MPC) on April 5 left the key repo rate unchanged at 6.5 percent for the seventh time in a row, in line with the market expectations, with its focus firmly on bringing inflation down. In its first meeting of FY 25, the rate-setting panel left the stance unchanged as withdrawal of accommodation. The decisions were takes with a 5:1 majority.

Repo is the rate at which the central bank lends money to banks for the short term.

The RBI Governor also announced that there will be no changes in the GDP growth forecast for FY25. The GDP growth estimate was retained at 7 percent for the current fiscal year. On the inflation front, the RBI MPC sees it at 4.5 percent for FY25.

Between May 2022 and February 2023, the rate-setting panel raised the repo rate by 250 basis points (bps) but has since held it steady.