As the digital payment across the country is increasing, the Reserve Bank of India (RBI) has come up with a new announcement in expanding the digital payment reach by introducing a new feature called “Delegated Payments” on the Unified Payments Interface (UPI).
The RBI during its August monetary policy committee meeting introduced this new feature, aiming to make digital transactions more accessible and convenient for everyone.
What is Delegated Payment on UPI?
Delegated Payment is a new feature proposed by the RBI during the August Monetary Policy which aims to offer multiple users to make UPI payment from a single primary bank account.
In simple terms, it will allow primary user, that is, the account holder to authorise a secondary user, that is a family member or a trusted person to make payment from their account.
Highlights of Monetary Policy announcement today by Governor, Shri @DasShaktikanta #RBI #RBIMPC #MonetaryPolicy2024 pic.twitter.com/pTTIjBCHw1
— ReserveBankOfIndia (@RBI) August 8, 2024 RBI Proposes New UPI Rules: Now 2 Users Can Share Same Bank Accounts For Payments
Moreover, in this new feature, the primary user can set the transaction limit for the secondary user, ensuring control and security.
How to activate the Delegated Payment Feature?
While, as of now, the RBI has not yet issued a detailed guidelines for the said. The process of activating the Delegated Payments is expected to be straightforward and may be out soon.
Some of the expected or potential way to activate it might include the primary user authorisation, secondary user add, setting transaction limit and confirmation from the two ends.
How to Set the Limit for Delegated Payments?
Although, the RBI has not yet released the guidelines for this feature but it is expected that the main control over the finances while proving the flexibility to the secondary user will remain under the Primary user control.
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As far as it is be expected that the primary user will have the options to set a transactions limit and adding a secondary user. Moreover, it is anticipated that the primary user will have the option to select the maximum amount that can be transacted in a single transaction or over a specific period.
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Who Can Use the Delegated Payments Feature?
Delegated Payments is designed for everyone, but it could be especially beneficial in certain situations where families share a single bank account, the elderly or less tech-savvy users, business correspondents and so on.
As we await the detailed guidelines from the RBI, the introduction of Delegated Payments on UPI could be a game changer in the expading the reach of digital payments across the country.
