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.

 

Source:

https://timesofindia.indiatimes.com/business/india-business/rbi-introduces-two-new-upi-features-from-cash-deposit-to-ppi-wallet-interoperability-what-they-mean-for-you/articleshow/109072007.cms