The Reserve Bank of India (RBI) has recently introduced a Delegated Payments facility for the Unified Payments Interface (UPI). This new feature enables the primary user to authorize another individual to conduct UPI transactions up to a specified limit from the primary user’s bank account. Importantly, the secondary user does not need to have a separate bank account linked to UPI for this purpose.
Governor’s Statement on Digital Payments
Shaktikanta Das, the Governor of RBI, emphasized that this development will significantly enhance the reach and adoption of digital payments. By allowing two individuals to make payments from the same bank account, the initiative is expected to broaden the usage of UPI.
Impact on Rural India
This change is particularly beneficial for rural areas, where typically, a single bank account may serve an entire family. According to analysts, the new facility will enable two family members to utilize one bank account for UPI transactions, thereby promoting the growth of UPI payments in these regions.
Increase in Tax Payment Limits
Additionally, the RBI has raised the transaction limit for tax payments made via UPI. Previously capped at ₹1 lakh, the new limit for tax-related UPI transactions has been increased to ₹5 lakh per transaction. This adjustment aims to simplify the process of tax payments for consumers using UPI.
