MUMBAI: UPI, which currently processes nearly 50 crore transactions per day, is set to grow bigger. RBI has allowed “delegated payments” on UPI that would enable third parties to use the account of a primary user. RBI also increased limits on UPI for tax payments to Rs 5 lakh from Rs 1 lakh.
“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,” said Shaktikanta Das. The new feature has captured the imagination of fintech players who see new use cases ranging from businessmen delegating payments to employees, to parents carving out spending limits for kids or children managing payments for senior citizen parents.
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On payments, Das also announced continuous clearing of cheques under the truncation system in place of the present batch processing. Das said that this will increase efficiency of cheque clearing and improve ease of doing business as it can lead to same day clearing of cheques.
