Mudra Compass

In a significant move to simplify banking transactions, leading banks like Bank of Baroda and Axis Bank have introduced the UPI-enabled Interoperable Cash Deposit (ICD) facility, allowing customers to deposit cash into ATMs without using a debit card. This innovative feature, supported by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI), aims to transform the cash deposit process and make it more convenient for users across the country.

What is UPI-Enabled Interoperable Cash Deposit (ICD)?

The UPI-ICD feature allows customers to deposit cash into their own or any other bank account using any UPI app, making the process simple, seamless, and entirely cardless. This facility is currently available at select ATMs equipped with advanced cash recycler machines, which support both cash deposits and withdrawals.

In contrast to the traditional method of depositing cash by filling out a deposit slip or using a debit card at the ATM, UPI-ICD offers a new level of convenience. If you don’t have your debit card with you but need to deposit cash, you can now do so by using your UPI-enabled smartphone.

How to Use the UPI-ICD Facility: A Step-by-Step Guide

Here is a simple guide on how to make cash deposits through UPI-ICD:

1. Find an ATM with the UPI-ICD Feature: Locate an ATM with a cash recycler machine that supports UPI-enabled cash deposits.

2. Scan the QR Code – Once you are at the ATM, scan the QR code displayed on the ATM screen using your UPI app. This step eliminates the need for inserting a debit card.

3. Choose the ‘Cash Deposit’ Option – On the ATM screen, select the ‘cash deposit’ option to start your transaction.

4. Authenticate Using UPI Details – Enter your mobile number linked to your UPI account, UPI ID, or IFSC (Indian Financial System Code) to authenticate and proceed.

5. Enter the Deposit Amount – Input the amount you want to deposit and confirm the transaction on the ATM screen.

6. Insert the Cash into the ATM – Insert the cash into the ATM’s deposit slot. The machine will count and verify the cash before crediting it to the specified bank account.

7. Real-Time Credit – The deposited amount will be credited in real-time, ensuring an instant update to your bank account.

It is important to ensure that your UPI app is updated and supports the ICD functionality to use this feature effectively.

Benefits of UPI-Enabled ICD

The UPI-ICD facility provides numerous benefits to customers:

1. Cardless Transactions – One of the biggest advantages of UPI-ICD is that it removes the need for a physical debit card. This not only enhances convenience but also mitigates the risks associated with card loss, theft, or fraud.

2. Seamless Integration – The UPI-ICD feature integrates seamlessly with existing UPI infrastructure, making it easily accessible through UPI-enabled apps like Google Pay, PhonePe, Paytm, and others. Since most users are already familiar with these platforms, the transition to ICD is user-friendly.

3. Enhanced Security – With growing concerns over banking fraud, UPI-ICD ensures safe transactions by encrypting sensitive user data. The highest level of security is applied, protecting personal information during each transaction.

4. Instant Processing – Real-time crediting of funds ensures that there are no delays, allowing users to deposit cash and immediately see the reflected balance in their account.

5. Wider Accessibility – As the UPI-ICD feature rolls out across more ATMs and banks, it will provide wider access, allowing customers from various banks to enjoy cardless cash deposits across the country.

Banks Offering UPI-ICD Services

Several leading banks have already implemented the UPI-ICD facility, and more are expected to follow suit soon. Currently, banks like Axis Bank and Union Bank of India are offering this feature at select ATMs. With the nationwide rollout happening in phases, more banks are anticipated to integrate the UPI-ICD functionality, making cash deposits even more accessible to a broader range of customers.

How UPI-ICD is Revolutionizing the Banking Experience

The introduction of UPI-ICD is part of a larger trend toward digital transformation in banking. This move aligns with the increasing shift toward cashless and cardless transactions, driven by the growing popularity of UPI as a secure and convenient payment platform.

In India, UPI has already made waves in facilitating payments and transfers between individuals and businesses, replacing traditional methods like cash and cards. Now, with the inclusion of UPI-ICD, customers can deposit cash into their accounts with just a mobile app, further streamlining the banking experience.

For customers who frequently handle cash, UPI-ICD offers an easy way to deposit funds without the hassle of carrying physical cards or filling out paper slips. Whether you’re running a small business, managing household expenses, or simply prefer using cash for certain transactions, this feature ensures that depositing cash into your account is as simple as scanning a QR code.

Conclusion

The UPI-enabled Interoperable Cash Deposit (ICD) facility is a game-changing feature that provides customers with a cardless, secure, and user-friendly way to deposit cash into their bank accounts. With the facility’s phased rollout by leading banks like Axis Bank and Union Bank of India, and plans for broader adoption, UPI-ICD is poised to revolutionize the cash deposit experience at ATMs nationwide.

For customers looking to enjoy the convenience of digital banking without sacrificing the flexibility of cash transactions, UPI-ICD is an ideal solution that merges the best of both worlds. As this service continues to expand, it will become a staple feature of the banking landscape in India, making cash deposits easier and more accessible than ever before.