Interoperable cash deposit machines may soon be reality: RBI

Bank customers may soon be able to deposit cash in their accounts from any bank's cash deposit machines

Bank customers might in the near future be able to deposit cash in their accounts from any bank’s cash deposit machines (CDMs).

The Reserve Bank of India (RBI) is considering a proposal to link these machines with the National Financial Switch (NFS). The latter is the backbone of Automated Teller Machines in the country, being managed by National Payments Corporation of India (NPCI). The organisation has given a proposal for linking these CDMs to NFS, said H R Khan, deputy governor of RBI.

He had just inaugurated Dena Bank's self-service e-Smart facility here. Khan said the idea was to encourage alternate banking channels for day-to-day transactions.

Asked about the ATM interchange fee, he said it was being discussed by banks and RBI had allowed them to take a decision.

“Any technology or initiative has to be profitable, particularly in the initial phase. If you are not able to recover the cost, they will not have incentive to expand all these alternate channels. So, you have to strike a balance between profit and convenience,” Khan said.

RBI had, he said, increased its focus on cyber security, in the wake of rising instances of phishing. Banks have been alerted.

Recently, the central bank had issued a public advisory against an app (application) doing the rounds on WhatsApp, purportedly to facilitate checking of bank balances.

“The Reserve Bank wishes to clarify that it has not developed any such application. Members of the public are, therefore, advised to use the application, if at all, at their own risk,” it had said.

Dena Bank opened its 16th e-smart facility on Thursday, giving customers access to anytime banking. The bank plans to increase the e-smart facilities to 200 by the end of this financial year, said chairman Ashwani Kumar.