The Reserve Bank of India (RBI) under the leadership of Governor Shaktikanta Das has announced pioneering measures aimed at revolutionizing cash transactions and digital payments in the country. In a recent address, Governor Das unveiled plans to enable cash deposits through cash deposit machines (CDMs) using Unified Payments Interface (UPI) and to allow UPI payments through Prepaid Payment Instruments (PPI) wallets. This move is expected to significantly enhance customer convenience and streamline currency handling processes at banks.

Governor Das emphasized that the proposal to facilitate cash deposits through CDMs using UPI is a strategic step following the successful implementation of cardless cash withdrawals using UPI at ATMs. This initiative is poised to make cash transactions more seamless and efficient for customers. Furthermore, allowing the use of third-party UPI apps for payments through PPI wallets is anticipated to further accelerate the adoption of digital payments, particularly for small-value transactions, thereby fostering financial inclusivity and driving the nation towards a cash-lite economy.

In addition to these groundbreaking measures, the RBI also presented its economic outlook, maintaining the real GDP growth forecast for the current fiscal year at 7%. Although slight adjustments were made to the GDP growth targets for specific quarters, with a revision for Q1 FY25 to 7.1% and for Q2 FY25 to 6.9%, the overall projections remain optimistic. Notably, India’s GDP growth rate for the quarter ending December 2023 surpassed expectations, reaching 8.4%, underscoring the nation’s resilience and reaffirming its status as the fastest-growing major economy globally. Furthermore, the RBI’s decision to maintain the benchmark interest rate (repo rate) at 6.5% signifies continuity in its monetary policy stance, aimed at sustaining economic stability and fostering growth amidst evolving global and domestic dynamics.