5 April 2024 – Reserve Bank of India (RBI) Governor Shaktikanta Das unveils plans to revolutionize digital payments by enabling UPI for cash deposit facilities and permitting third-party UPI apps for Prepaid Payment Instruments (PPI) wallets. These measures aim to enhance customer convenience and promote the widespread adoption of digital transactions.
Governor Das announces groundbreaking initiatives to modernize banking services and facilitate seamless digital transactions. Firstly, the RBI proposes to leverage UPI technology for cash deposits through Cash Deposit Machines (CDMs), reducing reliance on debit cards and streamlining currency handling processes at banks.
Furthermore, the RBI plans to permit the use of third-party UPI apps for making payments from PPI wallets, expanding the scope of digital transactions and enhancing customer flexibility. Currently, UPI payments from PPIs are limited to the issuer’s web or mobile app, hindering convenience and adoption.
The introduction of UPI for cash deposits and the inclusion of third-party UPI apps for PPI wallets align with the RBI’s vision to promote a cashless economy and drive digital financial inclusion. These initiatives not only improve customer experience but also enhance efficiency in banking operations.
Operational guidelines for utilizing UPI for cash deposits and enabling third-party UPI apps for PPI wallets will be issued shortly by the RBI, marking a significant milestone in India’s digital payment ecosystem.
