After cardless cash withdrawal, now you can deposit cash through UPI at ATMs. The RBI in its MPC review on Friday, allowed users to deposit cash in cash deposit machines (CDMs) through UPI.
CDMs or cash deposit machines lets you deposit cash directly into the bank account using the debit card, saving you the hassle of visiting your bank. With RBI letting UPI do the task, it brings in a whole new ease for your banking.
Post this, customers will now have the option of using the UPI interface instead of debit card if they wish to. Once it's verified, the amount is credited to the customer's bank account.
"Given the experience gained from cardless cash withdrawal using UPI at the ATMs, it is now proposed to facilitate deposit of cash in CDMs that is in the cash deposit machines using UPI. This measure will further enhance customer convenience and make currency handling process at banks more efficient," RBI Governor Shaktikanta Das said.
The RBI has left its benchmark interest rate unchanged for a seventh straight policy meeting as warnings of a coming heat wave renewed fears of an inflation spike. The Monetary Policy Committee voted five-to-one to keep the benchmark repurchase rate at 6.5% Friday.
The six-member panel also decided to retain its relatively hawkish policy stance of “withdrawal of accommodation.”
Hotter-than-usual temperatures across the country and strong economic expansion has complicated the timing of any rate easing. Rising food prices have been the main driver of India’s inflation, which remains well above the Reserve Bank of India’s 4% target. Das has said in the past the central bank wouldn’t consider easing unless inflation settles durably around its goal.
Governor Shaktikanta Das, delivering the last rate decision before elections kick off in two weeks time, said strong growth prospects gives the central bank space to focus on inflation.
The central bank “remains resolute in its assessment to aligning inflation to its target,” he said. “The last mile of disinflation is turning out to be challenging.”
The rupee was steady while government bond yields climbed 2 basis points to 7.11% after the decision.
Upasna Bhardwaj, an economist at Kotak Mahindra Bank Ltd., said while core inflation has slowed, “the uncertainty on food inflation remains a worry.” The Federal Reserve’s delay in cutting rates will also make the RBI wary of easing now, she said. She sees the earliest possible RBI action likely in the final three months of the year.
India’s economy is estimated to have expanded 8% or higher in the fiscal year ended in March, with officials predicting over 7% growth in the current financial year. Prime Minister Narendra Modi, who’s seeking a third term in office, said on April 1 that growth should be the RBI’s top priority over the next decade.