Now, multiple users can transact via one UPI account

RBI has introduced a new facility that allows the primary user to authorise another individual to make UPI transaction even without a separate UPI-linked bank account.

Called Delegated UPI Payments, the system will be useful for older parents and students who can make UPI transactions even without a linked bank account. The move will also deepen and boost UPI payments in rural India, where one family often has only one bank account.

Yashwant Lodha, Co-Founder, PayNearby, said, “This innovative facility will allow individuals in rural areas to leverage UPI without the need to link their own bank accounts. Instead, they can access the UPI of an existing linked account, simplifying transactions and eliminating the need to maintain multiple accounts.”

For the less tech-savvy population, the assisted payment model can become a game changer. Business Correspondents who are well-versed in processing transactions, can provide crucial assistance by ensuring secured and accurate transactions. This will prevent inadvertent payments, making digital payments more accessible and user-friendly, collectively advancing towards the goal of a truly digital Bharat.

Shaktikanta Das, Governor, RBI, said the move to allow two people to make payments from the same bank account will further deepen the reach and usage of digital payments.

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The central bank has also increased the limit for making tax payments. The transaction limit for UPI is ₹1 lakh, except for certain categories of payments which have higher transaction limits.

“It has now been decided to enhance the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction. This will further ease tax payments by consumers through UPI,” Das said.

Rahul Singhal, Subject Matter Expert, SN Dhawan & CO LLP, said the decision to enhance UPI limit for tax payment will enhance the efficiency and convenience of digital tax payments, making it easier for both individuals and businesses to manage their tax obligations seamlessly. It aligns with ongoing efforts to promote a cashless economy and underscores the RBI’s commitment to fostering a robust digital payment ecosystem in India.

Rahul Jain – CFO, NTT DATA Payment Services India, said enhanced tax payment limit through UPI will strengthen the tax-collection system, reduce the cost of tax-collection and make tax-payments more convenient for taxpayers.

While more details on delegated UPI payments facility, he said, the initiative will further strengthen and enhance UPI payments especially in rural areas, where financial literacy is less and one bank account is used by one family.