Gone are the days when you had to visit a bank to deposit cash. With a new facility introduced for UPI users, you can now deposit cash directly into your account through ATMs without the need for a debit card. Axis Bank and Union Bank of India have already rolled out this feature, and it is expected to be available across other banks and ATMs soon.
This new service, known as UPI-ICD, has been launched by the Reserve Bank of India (RBI) in collaboration with the National Payments Corporation of India (NPCI). Through this system, you can deposit cash into your account by using any UPI-based app on your smartphone.
Current Methods to Deposit Cash
Until now, depositing cash into a bank account had two primary options: either visit the bank branch in person or use an ATM to deposit cash with the help of a debit card. However, this new UPI-based feature eliminates the need for a debit card, making the process more convenient and secure.
How to Deposit Cash at ATM Using UPI
Here’s a simple step-by-step guide to depositing cash in ATMs using UPI:
- Locate a UPI-Enabled ATM: Find an ATM near you with a cash deposit machine that supports UPI transactions. The facility is gradually being introduced, so look for the latest updates in your area.
- Select the Cash Deposit Option: Once at the ATM, select the “Cash Deposit” option on the screen. Press OK to proceed.
- Enter UPI Details: You’ll need to enter your mobile number, Virtual Payment Address (VPA), or the IFSC code of the bank account you wish to deposit money into. Alternatively, you can scan the QR code displayed on the ATM screen for faster input.
- Deposit Cash: Place your cash in the designated slot of the machine and specify the number of notes for each denomination.
- Confirm Transaction via UPI App: Open your UPI app, where you’ll see the deposited amount reflected. Verify the transaction details and authorize it by entering your UPI PIN.
- Receive Receipt: Once the transaction is successfully completed, the machine will print out a receipt confirming the deposit.
The Growing Popularity of UPI in India
UPI (Unified Payments Interface) has been a game changer in the digital payments landscape in India. More and more people are turning to UPI for their day-to-day transactions, and its usage is growing rapidly. In August 2024 alone, UPI transactions saw a 58% increase compared to the same period last year, reflecting its rising acceptance.
Apart from UPI, other digital payment services like Bharat Bill Payment System (BBPS) have also seen a surge in usage for paying utility bills such as electricity, gas, and DTH. This indicates the growing trust people have in online financial transactions.
UPI’s Expansion and Growth
Data from the RBI shows that UPI transactions have grown by 35% between April and August 2024, with a total transaction value crossing ₹101 lakh crore. In addition to domestic growth, UPI has expanded its reach internationally. For instance, in March 2024, the UPI Person-to-Merchant (P2M) feature was launched in Nepal, and since then, over one lakh transactions have been processed through UPI in that country.
Apart from UPI, services like Fastag and the National Common Mobility Card have also become popular, allowing auto payments and wallet transactions to be carried out smoothly.
