Now you can let your friends use your UPI account
The Reserve Bank of India (RBI) has introduced a new feature for Unified Payments Interface (UPI) users, known as "delegated payments." This innovative functionality allows a primary account holder to authorize another individual to conduct transactions from their bank account. The announcement was made by RBI Governor Shaktikanta Das today, during the disclosure of the bi-monthly policy outcome.
Delegated payments: A step toward broader UPI adoption
The delegated payments feature is designed to allow a primary customer to authorize a secondary user to execute transactions through their bank account, up to a certain limit. Notably, the secondary user does not need a separate bank account linked to UPI for these transactions. Das expressed his belief that this new feature will "further deepen the reach and usage of UPI digital payments." However, specific details about how these measures will be implemented are still pending release.
Increased UPI limit for tax payments
In addition to the delegated payments feature, the RBI has also raised the UPI limit for individuals paying tax from ₹1 lakh to ₹5 lakh. This decision was taken by the monetary policy committee, which also decided to maintain the repo rate at 6.5% for the ninth consecutive time. The increased limit is anticipated to offer convenience for taxpayers, particularly for high-value transactions. The latest changes are part of RBI's ongoing efforts to enhance and streamline India's digital payment systems.
