The Reserve Bank of India has proposed cash deposit in banks through Unified Payment Interface (UPI) mechanism.
RBI has also proposed making UPI payments through Prepaid Payment Instruments (PPI) wallets.
Announcing the 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 card-less cash withdrawal using UPI at the ATMs, it is now proposed to also facilitate deposit of cash in CDMs using UPI.”
He said that the measure will enhance customer convenience and make the currency handling process at banks more efficient.
“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 further said.
The RBI has also proposed making Central Bank Digital Currency (CBDC) accessible to broader sectors of customers by enabling non-bank payment system operators to offer CBDC wallets. CBDC pilots are currently in operation.
“The CBDC pilots are currently in operation with increasing number of use-cases and participating banks. It is proposed to make CBDC-Retail accessible to a broader segment of users by enabling non-bank payment system operators to offer CBDC wallets. This will also facilitate testing of the resiliency of CBDC platform to handle multi-channel transactions,” the RBI Governor said.
The RBI has proposed launching a mobile app for accessing the Retail Direct portal, which will increase convenience for retail investors.
“The RBI Retail Direct Scheme was launched in November 2021. It is now proposed to launch a mobile app for accessing the Retail Direct portal. This will be of greater convenience to retail investors and deepen the G-sec market,” Shaktikanta Das added.
