Last week, the RBI proposed to allow users to deposit cash in cash deposit machines (CDMs) through the Unified Payments Interface (UPI).
External affairs minister S Jaishankar on Wednesday highlighted India’s growth in digital payments saying that the country is making Unified Payments Interface (UPI) transactions worth ₹120 crores in a month. He also drew a comparison to the United States, asserting that they make digital transactions only worth ₹40 crores in a year.
“Today, we do cashless payments through UPI. We have transactions worth ₹120 crores in a month. While the US makes digital transactions worth ₹40 crores in a year. You should see how we have progressed in some areas and the world commends that,” Jaishankar said at an event in Rajasthan’s Bikaner.
UPI is a system that powers multiple bank accounts into a single mobile application, merging several banking features, seamless fund routing, and merchant payments into one hood, according to an official government release. It was launched on April 11, 2016, by former governor of the Reserve Bank of India (RBI) Raghuram Rajan.
RBI proposes cash deposits in banks through UPI
Last week, the RBI proposed to allow users to deposit cash in cash deposit machines (CDMs) through the Unified Payments Interface (UPI). Announcing the current fiscal’s first monetary policy outlook, RBI governor Shaktikanta Das said, “Deposit of cash through cash deposit machines (CDMs) is primarily being done through the use of debit cards. 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.”
He added, “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. It is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI wallets. This will further enhance customer convenience and boost adoption of digital payments for small value transactions.”
Das also proposed to make Central Bank Digital Currency (CBDC) accessible to broader sectors of customers by enabling non-bank payment system operators to offer CBDC wallets.
Meanwhile, India’s UPI services have also been introduced in Sri Lanka, Mauritius, and Nepal.
