While cash withdrawal is an easy task today as any ATM can be used for withdrawal. Same is not the case with cash deposits. One has to still go hunt their bank’s cash deposit machine or cash recyclers for depositing the cash. But, National Payments Corporation of India [NCPI] is pursuing the top banks to bring a change and make deposit an interoperable feature at their ATMs and branches. Already Unified Payments Interface [UPI] has been adopted by almost every bank.
NPCI believes that an interoperable cash-deposit system enabled through its National Financial Switch (NFS), initially developed by Institute for Development & Research in Banking Technology (IDBRT), could help reduce the cost of currency handling for the entire banking system, said four people aware of the matter. If such a system is developed it will help the ATM operators to save costs of replenishment of ATMs cash as the cash deposited can be recycled to be used for withdrawals.
“All major private and public-sector banks have been asked to join the interoperable network,” a private banker said on the conditions of anonymity. “However, for banks, before accepting these terms, there are several factors to be considered, such as tackling of counterfeit currency deposits through this mode and a thorough reconciliation framework, before widespread adoption of the platform will be seen.” Fourteen banks are already operating live on the Interoperable Cash Deposit network. Ecommerce players and food aggregators shall benefit to the maximum as delivery agents can reduce high costs of handling cash accumulated by instant credits made at deposits accepting ATMs. There is around 30000 ATM that could adopt the change for cash deposit without any significant changes to the hardware and use the Institute for Development & Research in Banking Technology (IDBRT).