New Delhi. Digital payments have been increasing continuously in the country in the last few years, especially payments through UPI have increased rapidly. To further improve the user experience, RBI is constantly bringing new facilities in the digital payment system.
In this series, RBI announced two new facilities through UPI payment in its policy on August 7. These include increasing the limit of tax payment through UPI and the facility of delegated payment service. Delegated payment service means that the UPI user will be able to give the authority to make payment from his account to another person.
RBI Governor Shaktikanta Das, while giving information about the decision taken in the monetary policy committee meeting, said that UPI has become the most preferred mode of payment due to its convenient facilities. Currently, the tax payment limit for UPI is Rs 1 lakh.
What is Delegated Payments Service
In the delegated payment service for UPI payments, one person (primary user) will be able to allow another person (secondary user) to make UPI transactions from his bank account. However, the limit of such transactions will be set by the primary user. RBI Governor Shaktikanta Das said, “This is expected to increase the reach and use of digital payments across the country. Detailed instructions will also be issued soon in this regard.”
Also Read: Jio users are getting 20GB extra data for FREE, no need to recharge for 72 days
Children will also be able to make payments from their father’s account
Mohit Bedi, co-founder of third party payment application Kiwi, said about the delegated payment service, “Through this step, RBI is going to provide the facility to the primary account holder (parents) so that minors can also make UPI payments through their account. For this, the parents will just have to approve this transaction. With this facility, a new system will come inside the UPI application.”
Tax payment limit increased through UPI
Governor Shaktikanta Das said, “Direct and indirect tax payments are common, regular and of high value, so it has been decided to increase the limit of tax payment through UPI from Rs 1 lakh to Rs 5 lakh per transaction. Necessary instructions will be issued separately in this regard.”
According to RBI, the user base of Unified Payments Interface (UPI) has reached 42.4 crores. However, there is a possibility of further expansion of the user base. There is also a proposal to introduce ‘delegated payments’ in UPI.
