During the MPC meeting in August, the Reserve Bank of India came up with this new facility which would allow the primary user to authorize another individual to make UPI transactions even without a separate UPI-linked bank account.
Reserve Bank Launch New Feature
Basically, the move to allow two people to make payments from the same bank account will further deepen the reach and usage of digital payments, according to Shaktikanta Das, Governor, RBI.
Further the central bank mentioned 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.”
It seems that the Reserve Bank of India introduced this facility during this event.
The feature is expected to help the primary user to authorize another individual to make a UPI transaction without even requiring a separate UPI-linked bank account.
Further, the central bank noted, “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.”
A Seamless Solution
As informed, this Unified Payments Interface (UPI) Circle-Delegate Payments feature has been strategically developed to provide a seamless solution for two individuals to utilize a shared bank account for conducting UPI transactions.
This would especially be beneficial for the households wherein only one individual possesses a bank account or in scenarios where several family members manage a joint account.
The same is highlighted in NPCI’s statement, “UPI Circle-Delegate Payments is a feature where a UPI user acts as a primary to link with their trusted secondary users on their UPI App for either partial or full delegation.”
The UPI Circle was officially approved During the UPI Steering Committee meeting held on August 3, 2023.
With this feature, the primary users can assign payment responsibilities to designated secondary users whom they trust.
Moving ahead, they claim that the main user preserves authority over transaction ceilings and supervision, thereby amplifying user convenience while upholding stringent security measures.
This feature can definitely help the individuals who may lack the capacity or inclination to oversee their digital transactions, yet still seek to utilize financial services.
When it comes to the UPI delegate payments, it offers a convenient and inclusive solution for customers.
Hence, enabling dependents such as minors or elderly parents to manage expenses without the necessity of individual accounts.
