RBI MPC Allows Depositing Money Via UPI In Cash Deposit Machines

RBI's Monetary Policy Committee has authorized the use of Unified Payments Interface (UPI) for depositing money in cash deposit machines (CDMs)
RBI Monetary Policy Meeting
RBI Monetary Policy Meeting

RBI has announced in its latest Monetary Policy Committee (MPC) meeting that it will authorize the use of the Unified Payments Interface (UPI) for depositing money in cash deposit machines (CDMs).

“Deposit of cash through Cash Deposit Machines (CDMs) is primarily being done 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,” RBI governor, Shaktikanta Das said on Friday.

The apex bank kept the repo rate unchanged at 6.5 per cent, marking the seventh consecutive meeting where it remained unchanged. Keeping in view the inflationary concerns, the panel opted to retain the stance of 'withdrawal of accommodation' unchanged.

"The RBI kept the repo rate unchanged, with the likelihood of an immediate rate cut diminishing. This shift comes after the government issued a caution regarding an impending heatwave, and the economy demonstrated a quicker growth trajectory than initially anticipated," said Amit Goel, Co-Founder & Chief Global Strategist, Pace360

He added that robust growth prospects provide policy space to remain focused on inflation and ensure its descent to the target of 4 per cent.

As uncertainties in food prices continue to pose challenges, the MPC remains vigilant to the upside risks to inflation that may derail the path to disinflation.

The growth rate for the third quarter of FY24 remains steady at 7 per cent. For the last quarter of the fiscal year, the RBI adjusted the growth forecast upward to 7 per cent from its previous estimate of 6.9 per cent.

"With GDP growth projected at 7 per cent for FY25 and positive investment prospects, market sentiment remains buoyant. The anticipation of a normal monsoon season offers positive prospects for agricultural output, though risks from adverse climate shocks remain a concern" said Arvinder Singh Nanda, Senior Vice President at Master Capital Services Ltd.

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