RBI TO ALLOW UPI FOR CASH DEPOSIT, ENHANCING BANKING CONVENIENCE.

Why in the news?

RBI plans to enable UPI for cash deposits, permits foreign investment in green bonds, and introduces a mobile app for Retail Direct scheme.

source:fintra

About RBI’s Initiatives for Digital Banking:

RBI plans to enable Unified Payment Interface (UPI) for cash deposits, acknowledging its popularity and convenience.
This move aims to enhance customer convenience and reduce cash-handling load in bank branches.
Operational instructions for implementing UPI-based cash deposit facilities will be issued shortly.

What is Unified Payments Interface (UPI)?

● Digital and real-time payment system developed by NPCI and regulated by RBI.

● Launched on April 11, 2016.

● Enables peer-to-peer inter-bank transfers through a two-click authentication process.

Key Features:

● Simplifies transfers using recipient’s UPI ID (mobile number, QR code, or Virtual Payment Address).

● Eliminates the need for entering bank details each time.

● Offers consistent UPI transaction PIN across apps for enhanced cross-operability.

● Utilises technologies like IMPS and AEPS for smooth payments between accounts.

● Facilitates push and pull transactions, barcode payments, and recurring payments such as utility bills and subscriptions.

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