Furthermore, Das advocated the publication of a discussion paper on different charges in the payment system in order to get a more comprehensive understanding of the difficulties involved and alternative measures to mitigate the concerns in order to make digital transactions more inexpensive.
RBI Governor Shaktikanta Das advocated on Wednesday that payment solutions based on the Unified Payments Interface (UPI) be launched for feature phone customers. He also stated that the transaction limit for payments made via UPI under the Retail Direct Scheme would be increased from Rs 2 lakh to Rs 5 lakh, effective immediately.
According to Das, who was speaking at a press conference to announce the outcome of the Reserve Bank of India (RBI) Monetary Policy, UPI is the single largest retail payment system in the world in terms of volume of transactions, indicating widespread acceptance, particularly for small-value payments.
Specifically, it is proposed that in order to further develop and make digital payments more inclusive, to make transactions easier for consumers, to expedite active engagement of retail customers in various segments of financial markets, and to improve the capacity of service providers, that they should:
- Introduce UPI-based payment goods for feature phone users, drawing on innovative solutions from the RBI’s Regulatory Sandbox on Retail Payments; and Promote UPI-based payment products for feature phone users.
- It is also intended to simplify the process flow for small value transactions by incorporating an “on-device” wallet mechanism into UPI apps; and
- It is proposed to raise the transaction limit for payments using the Unified Payments Interface (UPI) for the Retail Direct Scheme for investment in G-secs and Initial Public Offering (IPO) registrations from Rs 2 lakh to Rs 5 lakh.
Furthermore, Das advocated the publication of a discussion paper on different charges in the payment system in order to get a more comprehensive understanding of the difficulties involved and alternative measures to mitigate the concerns in order to make digital transactions more inexpensive.
