RBI allows cash deposits in CDMs via UPI

Mumbai, April 5 (IANS) The RBI has decided to allow bank customers to deposit money in Cash Deposit Machines (CDMs) through UPI as part of its policy to enhance convenience in carrying out transactions.

Deposit of cash through CDMs is currently being done primarily 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. This measure will further enhance customer convenience and make the currency handling process at banks more efficient,” Das explained.

He said apart from making things easier for customers, banks would also benefit as they currently spend a lot of time in dealing with cash deposits at their branches.

The RBI has also decided to permit small finance banks (SFBs) to use permissible rupee interest derivative products for hedging their interest rate risk and enhance their resilience. At present, SFBs are allowed to use only Interest Rate Futures (IRFs) for proprietary hedging.

–IANS

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