The Reserve Bank of India (RBI) has recently unveiled a series of proposals aimed at advancing the Unified Payments Interface (UPI) system and addressing concerns related to digital lending. One of the most notable changes is the proposed increase in the UPI transaction limit from Rs 1 lakh to Rs 5 lakh. This substantial rise in the transaction cap is designed to facilitate higher-value transactions, including those related to tax payments, thus enhancing the convenience and efficiency of digital transactions for consumers. By raising the limit, the RBI seeks to further integrate UPI into everyday financial activities and support the broader adoption of digital payments.
In a complementary move, the RBI plans to introduce a feature that would allow delegated payments through UPI. This innovation will enable individuals to authorize others to execute UPI transactions from their bank accounts, without the need for the secondary users to have their own UPI-linked accounts. Such a provision is expected to deepen the reach of digital payments, making it easier for individuals to manage and delegate financial transactions.
Addressing the issue of digital lending, the RBI has also proposed the creation of a public repository for digital lending apps used by banks and financial institutions. This repository aims to combat the proliferation of unauthorized and potentially fraudulent lending applications by providing consumers with a verified list of legitimate apps. This measure is part of a broader effort to protect consumers from unscrupulous lending practices and ensure transparency in the digital lending space.
Additionally, the RBI intends to enhance the frequency of credit information reporting by lenders to credit information companies, proposing a shift from the current monthly reporting to a fortnightly or shorter interval basis. This adjustment is expected to enable faster updating of borrowers' credit information, thereby improving the accuracy of credit assessments and allowing lenders to make more informed decisions. Overall, these initiatives reflect the RBI’s commitment to advancing digital payment systems and enhancing consumer protection in the financial sector.
Comments