The initiatives were launched by Sanjay Lohiya, Secretary, DFS, at the Global Fintech Fest (GFF) 2026 in Mumbai on September 9.
ATMs to offer instant card and UPI QR issuance
Under the new open-source Android ATM solution, customers can receive personalised RuPay debit, credit and NCMC cards directly from the machine. Merchants can also obtain UPI QR codes for accepting digital payments.
The ATMs are also designed to offer services such as cheque deposits, account opening and loan applications, potentially expanding their role beyond cash withdrawal and deposit.
The immediate card issuance model could reduce the need for customers to visit a branch or wait for physical card delivery. Banks are also exploring the deployment of such machines as Digital Banking Units and at locations such as transit hubs, airports, campuses and corporate parks.
Nine banks are currently engaging with NPCI and ATM manufacturers to assess the solution. These include State Bank of India, Bank of Baroda, Union Bank of India, Punjab National Bank, Bank of India, Central Bank of India, UCO Bank, Slice Small Finance Bank and Airtel Payments Bank.
KCC, MUDRA credit lines can be used through UPI
The second initiative extends Credit Line on UPI to eligible beneficiaries of the Kisan Credit Card (KCC) and PM MUDRA Yojana (PMMY).
The Reserve Bank of India enabled Credit Line on UPI in September 2023, allowing pre-sanctioned bank credit lines to be linked to UPI as a funding account. Under the latest move, eligible KCC and MUDRA borrowers can use their sanctioned credit limits for merchant payments through UPI.
The move brings two major government-backed credit programmes into the UPI ecosystem. According to DFS, there are more than 7.7 crore operative KCC accounts with sanctioned limits of over ₹10 lakh crore, while PMMY has crossed 57 crore loans with cumulative sanctioned amounts of more than ₹40 lakh crore.
KCC customers of State Bank of India, Bank of Baroda, Punjab National Bank, Union Bank of India, Indian Bank, Canara Bank, Indian Overseas Bank, IDBI Bank, Bank of Maharashtra and UCO Bank can access the facility.
For MUDRA borrowers, the facility is currently available through State Bank of India, Punjab National Bank, Bank of Baroda, Union Bank of India, Canara Bank, Indian Overseas Bank and UCO Bank.
More banks are expected to be added to the facility.
Aadhaar-based cash deposits through AePS network
The third initiative introduces an AePS-based three-party cash deposit facility, allowing an Aadhaar-authenticated depositor to deposit cash directly into another person’s bank account through participating AePS Touchpoint Operators.
The service is aimed at extending cash deposit access beyond bank branches and bank-specific infrastructure by using the existing AePS network.
Under the process, the depositor is registered through Aadhaar biometric authentication-based eKYC. The beneficiary’s details are validated before the transaction, with the beneficiary’s name also confirmed to the customer through SMS before the deposit is completed.
This could be particularly relevant for customers in rural and semi-urban areas who may rely on assisted banking services or continue to transact primarily in cash.
The service is currently enabled across 14 banks, including State Bank of India, Bank of Baroda, Canara Bank, Indian Bank, Indian Overseas Bank, India Post Payments Bank, Union Bank of India, YES Bank, Airtel Payments Bank and Fino Payments Bank. More banks are expected to be added.
