NPCI launches UPI-based ATM cash deposit service: Here’s how it will work

The National Payments Corporation of India (NPCI) has announced the launch of UPI-ICD, short for Unified Payments Interface Interoperable Cash Deposit – a service that will allow users to deposit cash to their accounts through ATMs. It will eliminate the need for using a physical card, relying entirely on a user's mobile number linked to UPI, virtual payment address, and account IFSC. The new service, which will be rolled out gradually across the country, was launched by T. Rabi, Deputy Governor of the Reserve Bank of India (RBI).

“RBI Deputy Governor Shri T. Rabi Sankar announced innovative steps towards transforming the ATM infrastructure in India. Launches include UPI Interoperable Cash Deposit (UPI-ICD) at ATMs with Banks showcasing Android-based Digital Banking Units (DBUs). The launch took place in the presence of Shri Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director, NPCI,” wrote NPCI on X.

How will UPI-ICD work?

According to NPCI, the UPI ICD will allow customers to deposit cash at Automatic Teller Machines (ATMs) operated by banks and white label ATM operators (WLAOs) using UPI to their own bank account or any other bank account without the need for a physical card. “These ATMs are cash recycler machines which are used for both cash deposits and withdrawals,” said NPCI in a statement.

Instead of using their physical ATM or debit card, users can access the service by “leveraging their mobile numbers linked to UPI, virtual payments addresses (VPA), and account IFSCs.” These features will be available “as the banks gradually rolls them out,” according to the statement. However, NPCI has not specified a timeline for the rollout of the feature.

Alongside, RBI’s executive director Vivek Deep announced that Bharat Bill Payment System (BBPS) will now be known as Bharat Connect. “This is an important step to refresh and strengthen [the] BBPS brand,” said NPCI. It will go beyond the scope of BBPS as a bill payment system to create an ecosystem allowing individuals and businesses to connect with each other through an integrated platform.