RBI Financial Coverage | Quickly, deposit money utilizing UPI

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| Picture Credit score: C. Venkatachalapathy

The Reserve Financial institution of India has proposed to facilitate money deposit facility in banks by way of the usage of UPI, an instantaneous real-time fee system for inter-bank transactions by way of cell phones.

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“Given the recognition and acceptance of UPI, as additionally the advantages seen from the supply of UPI for cardless money withdrawal at ATMs, it’s now proposed to facilitate money deposit facility by way of use of UPI,” RBI Governor Shaktikanta Das mentioned within the Financial Coverage Assertion, launched on April 5, 2024.

The Money Deposit Machines (CDMs) deployed by banks improve buyer comfort whereas decreasing cash-handling load on financial institution branches. The power of money deposit is presently obtainable solely by way of use of debit playing cards.

Operational directions relating to money deposits utilizing UPI will likely be issued shortly, in accordance with the central financial institution.

RBI to allow linking PPIs with UPI apps

The RBI has additionally proposed to allow linking of Pay as you go Cost Devices (PPIs) by way of third-party UPI purposes to supply extra flexibility to customers.

At current, UPI funds from financial institution accounts could be made by linking a checking account by way of the UPI app of the financial institution or utilizing any third-party UPI utility. Nonetheless, the identical facility shouldn’t be obtainable for PPIs.

PPIs can presently be used to make UPI transactions solely through the use of the appliance offered by the PPI issuer.

“To supply extra flexibility to PPI holders, it’s now proposed to allow linking of PPIs by way of third-party UPI purposes. This may allow the PPI holders to make UPI funds like checking account holders,” the RBI mentioned.

Directions on this regard too will likely be issued shortly.