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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