The Reserve Bank of India (RBI), in collaboration with the National Payments Corporation of India (NPCI), recently introduced the UPI Interoperable Cash Deposit (UPI-ICD) feature. This facility is set to revolutionise cash deposits at ATMs.

What is UPI Interoperable Cash Deposit (UPI-ICD)?

UPI-ICD is a new feature that allows customers to deposit cash into their bank accounts—or any other bank account—using the Unified Payments Interface (UPI).

This can be done at ATMs equipped with cash recycler machines (CRMs), which handle both cash deposits and withdrawals.

By eliminating the need for physical cards, UPI-ICD simplifies the deposit process through a digital interface.

How to Use UPI-ICD?

Using the UPI-ICD feature involves a few steps:

Locate a compatible ATM: Find an ATM equipped with a cash recycler machine that supports UPI-ICD.

Initiate the deposit: Select the cash deposit option on the ATM screen.

Enter mobile number or VPA: Input your mobile number linked to UPI, Virtual Payment Address (VPA), or account IFSC.

Deposit cash: Insert the cash into the machine. The amount will be credited to the chosen bank account instantly.

Rollout and availability

The UPI-ICD feature will be rolled out gradually across various banks and ATMs in India.

Initially, some banks like Axis Bank and Union Bank of India have already started showcasing the technology.

Axis Bank was among the first to introduce an advanced Android Cash Recycler that supports UPI-ICD and UPI-based cash withdrawals.

This machine offers a range of services, including account opening, credit card issuance, and more, through a single platform.

Union Bank of India has also unveiled its UPI Interoperable Cash Deposit pilot.

Union Bank’s innovation enables customers to deposit cash into Union Bank’s CRM using a UPI app by scanning a QR code displayed on the machine.

Benefits of UPI-ICD

UPI-ICD eliminates the need for physical cards, reducing risks associated with card loss or theft.

By integrating with existing UPI infrastructure, the feature is easily accessible and user-friendly.

UPI-ICD supports both self and third-party deposits, further enhancing its utility for various banking needs.