Industry executives have welcomed the move by the Reserve Bank of India (RBI) on the proposed introducing Delegated Payments feature on Unified Payments Interface (UPI).
With the new Delegated Payments could simplify the UPI payments experience for those users who may not have a bank account, and could improve access to digital payments in regions where a single bank account is shared among family members.
The industry executives have welcomed this move and said that it is an important step forward for digital transactions.
“Firstly, the ability for the primary user to set transaction limits ensures controlled access, which enhances security and manageability. Secondly, it eliminates the necessity for the secondary user to have their own UPI, simplifying the process for those who may not have their own savings accounts.”
“This feature is especially impactful in regions where financial literacy is limited, and a single bank account is shared among multiple family members. The added layer of oversight will help individuals to maintain better control over their finances while promoting prudent spending practices,” said Co-Founder & CBO Mohit Bedi , Kiwi
By introducing this feature, it is anticipated that UPI spends will increase by at least 25-30 per cent, as minors and families begin to utilize the expanded functionality and convenience offered by Delegated Payments, he noted.
Sameer Nigam, CEO and founder, PhonePe, said, “In particular, it is a great way to introduce kids and senior citizens to the world of digital payments safely and securely.”
RBI in its monetary policy statement said that “Delegated Payments would allow an individual (primary user) to set a UPI transaction limit for another individual (secondary user) on the primary user’s bank account. This product is expected to add to the reach and usage of digital payments across the country. Detailed instructions will be issued shortly.”