RBI allows two users to share one bank account for UPI | RBI increase UPI limit for Tax Payment to 5 Lakhs

[Abhishek012]

RBI allows two users to share one bank account for UPI payments | RBI increase UPI limit for Tax Payment from 1 Lakh to 5 Lakh:​

UPI Payments: The Reserve Bank of India rolled out a feature in August allowing delegated UPI payments. Primary users can approve transactions for secondary users, like minors, within set limits. The RBI also increased the tax payment threshold via UPI to Rs. 5 lakh, enhancing convenience and transaction speed.​

The Reserve Bank of India introduced delegated payments through UPI during its August monetary policy. This would enable an individual (primary user) to allow another individual (secondary user) to make UPI transactions from the primary user’s bank account. The limit for such a transaction would be set by the primary user.

“They are trying to make the primary account holder (a parent) as the approving authority, so that UPI can be used by minors too. The parents will just just have to approve a transaction, via the family account. With this, a whole new system comes inside the UPI application”, said Mohit Bedi Co-Founder & CBO at Kiwi, a third party payments application.


This is similar to how minors can be added to their parents' accounts as authorised users and be issued a card. In this case, a minor or an individual without a bank account will be added to a ‘family account’ on the UPI app, Bedi said.

These transactions can happen only via a savings account, and not via credit or credit line on UPI, other industry leaders said.

The RBI also increased the threshold of tax payments via the unified payments interface (UPI) to Rs. 5 lakh per transaction on Thursday.


Prior to this, the transaction limit was Rs. 1 lakh per transaction for tax payments. This is expected to increase ease of payments, as paying through NEFT requires the user to put in account numbers, while also increasing the speed of the transaction.

 

[Strange]

RBI allows two users to share one bank account for UPI payments | RBI increase UPI limit for Tax Payment from 1 Lakh to 5 Lakh:​

UPI Payments: The Reserve Bank of India rolled out a feature in August allowing delegated UPI payments. Primary users can approve transactions for secondary users, like minors, within set limits. The RBI also increased the tax payment threshold via UPI to Rs. 5 lakh, enhancing convenience and transaction speed.​

The Reserve Bank of India introduced delegated payments through UPI during its August monetary policy. This would enable an individual (primary user) to allow another individual (secondary user) to make UPI transactions from the primary user’s bank account. The limit for such a transaction would be set by the primary user.

“They are trying to make the primary account holder (a parent) as the approving authority, so that UPI can be used by minors too. The parents will just just have to approve a transaction, via the family account. With this, a whole new system comes inside the UPI application”, said Mohit Bedi Co-Founder & CBO at Kiwi, a third party payments application.


This is similar to how minors can be added to their parents' accounts as authorised users and be issued a card. In this case, a minor or an individual without a bank account will be added to a ‘family account’ on the UPI app, Bedi said.

These transactions can happen only via a savings account, and not via credit or credit line on UPI, other industry leaders said.

The RBI also increased the threshold of tax payments via the unified payments interface (UPI) to Rs. 5 lakh per transaction on Thursday.


Prior to this, the transaction limit was Rs. 1 lakh per transaction for tax payments. This is expected to increase ease of payments, as paying through NEFT requires the user to put in account numbers, while also increasing the speed of the transaction.

Here is a summary of the key points from the passage:

1. The Reserve Bank of India (RBI) has introduced a feature allowing "delegated UPI payments". This allows a primary user (e.g. a parent) to approve UPI transactions for a secondary user (e.g. a minor child) within set limits.

2. This is similar to how minors can be added as authorized users on their parents' bank accounts and be issued debit cards. In this case, the minor or individual without a bank account will be added to a "family account" on the UPI app.

3. These delegated UPI transactions can only be made through a savings account, not a credit account or credit line.

4. The RBI has also increased the threshold for tax payments via UPI from Rs. 1 lakh per transaction to Rs. 5 lakh per transaction.

5. This is expected to enhance the convenience and speed of tax payments, as UPI is easier to use than NEFT which requires inputting account numbers.

In summary, the RBI has introduced features to expand UPI usage to minors and dependents, as well as increasing the limits for tax payments via UPI to improve the overall user experience.

 

[telescope]

Here is a summary of the key points from the passage:

1. The Reserve Bank of India (RBI) has introduced a feature allowing "delegated UPI payments". This allows a primary user (e.g. a parent) to approve UPI transactions for a secondary user (e.g. a minor child) within set limits.

2. This is similar to how minors can be added as authorized users on their parents' bank accounts and be issued debit cards. In this case, the minor or individual without a bank account will be added to a "family account" on the UPI app.

3. These delegated UPI transactions can only be made through a savings account, not a credit account or credit line.

4. The RBI has also increased the threshold for tax payments via UPI from Rs. 1 lakh per transaction to Rs. 5 lakh per transaction.

5. This is expected to enhance the convenience and speed of tax payments, as UPI is easier to use than NEFT which requires inputting account numbers.

In summary, the RBI has introduced features to expand UPI usage to minors and dependents, as well as increasing the limits for tax payments via UPI to improve the overall user experience.

Hail AI .

 

[panchabhut]

so this can only happen if the primary holder is available to approve the txn at that time?

 

[taskmaster]

Interesting feature. I guess it can be good for giving pocket money

 

[Wealth is my birth right!]

Adding all together RBI rocks:
MPC (Monetary Policy Committee) Update.

*Rates remain unchanged.*

RBI has come up with 4 BIG updates mentioned below:

1. *You Can Authorise Someone Else To Make UPI Payments From Your Bank Account*

The RBI governor proposed introducing a new feature called "Delegated Payments" for UPI.

How will this help?

This allows a primary user (you) to authorize a secondary user (like a family member) to make UPI transactions using your bank account.

You can set the limit for these transactions.

This way, the secondary user doesn't need a separate bank account linked to UPI. So, this can be a convenient way to manage digital payments within families, making it easier and safer for everyone.

Use Case: Children can pay school or college-related expenses from their parents’ bank accounts. Some senior citizens can also authorise their kids to make certain payments on their behalf.

2. *Cheques Are To Be Cleared Within A Few Hours Now*

Right now, the Cheque Truncation System (CTS) takes up to two days to process cheques.

CTS is a process used by banks to clear cheques electronically. Instead of physically moving the cheque from one bank to another, CTS involves scanning the cheque and transmitting its image and related information digitally. This speeds up the clearing process.

RBI has announced measures to ensure continuous cheque clearing under the Cheque Truncation System (CTS). Once implemented, cheques would be cleared within hours of submission instead of the two days currently required.

3. *Public Database To Spot Illegal Lending Apps*

Many unethical digital lending apps claim they are regulated by the RBI.

These apps cause all sorts of problems, including data privacy issues, charging high interest rates, and unfair ways of getting money back.

RBI has proposed a solution for this.

The central bank will create a public repository of verified digital lending apps (DLAs) associated with RBI-regulated entities.

Regulated entities will report their apps to this public repository, which will be available on RBI’s website. It will be updated regularly as new apps are added or old ones are removed.

4. *Increase In UPI Limit For Tax Payment*

UPI is super popular for payments because it’s so easy to use.

Right now, you can only transfer up to ₹1 lakh at a time. Based on the various use cases, the central bank has periodically reviewed and enhanced the limits.

For instance, RBI has increased this limit for certain uses, such as buying stocks, IPOs, loan collections, insurance, medical, and education payments. Now, RBI has added tax payments to this list.

RBI has decided to up the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction.

 

[vine]

UPI Circle for delegate payments launched: Multiple people can use one UPI account; how to use UPI Circle, transaction limit

The National Payments Corporation of India (NPCI) has introduced UPI Circle-Delegate Payments, allowing multiple individuals to use one UPI account. The primary user can delegate another individual to make UPI transactions from her bank account. This feature aims to expand UPI usage, especially...

m.economictimes.com

Looks like it's called "UPI Circle for delegate ".
Any idea if banks already implemented this?
The article gives generic steps, but How to enable this in any/each Bank?

 

[iamdhamo]

So how to share the UPI account? It would be more useful if the same is done for UPI on rupay cc

 

[Abhishek012]

So how to share the UPI account? It would be more useful if the same is done for UPI on rupay cc

NPCI has issued notification detailing out UPI CIRCLE in line with RBI announcement of DELEGATE PAYMENT

Two variation

1.Full Delegation -Where Secondary user once delegated can Pay UPTO 5000/TRANSACTION & 15000/MONTH on his CHOICE of Payment APP subject to limit set by PRIMARY acc holder without any transaction level process by Primary acc holder

2.Partial delegation -Where Secondary users initiate a transaction which is authorised by Primary acc holder on his UPI app using UPI pin
Transaction limit remains as per present limits

This second option is just like Payment request

One primary user can send 5 invites or delegate to 5 users

Manual entry of mobile number shall be restricted.

One secondary user can accept only one primary acc

Primary user can CHANGE LIMITS for secondary user at any time

One UPI acc can be used TO make UPI TRANSACTIONS by 1 PRIMARY & 5 Secondary users

Onboarding for UPI CIRCLE to start SOON as per NPCI & the process is via QR SCAN -UPI ID and then selecting mobile no - Send invite - once the secondary users accept invite the authorization & Limits can be set by primary user

Full details - https://www.npci.org.in/PDF/npci/upi/circular/2024/UPI-OC-No-201-FY-24-25-Introduction-of-UPI Circle–Delegated-Payments-for-secondary-users.pdf

 

[vine]

Does the secondary user need to have a SIM in their mobile ?

 

[0abhi0]

RBI allows two users to share one bank account for UPI payments | RBI increase UPI limit for Tax Payment from 1 Lakh to 5 Lakh:​

UPI Payments: The Reserve Bank of India rolled out a feature in August allowing delegated UPI payments. Primary users can approve transactions for secondary users, like minors, within set limits. The RBI also increased the tax payment threshold via UPI to Rs. 5 lakh, enhancing convenience and transaction speed.​

The Reserve Bank of India introduced delegated payments through UPI during its August monetary policy. This would enable an individual (primary user) to allow another individual (secondary user) to make UPI transactions from the primary user’s bank account. The limit for such a transaction would be set by the primary user.

“They are trying to make the primary account holder (a parent) as the approving authority, so that UPI can be used by minors too. The parents will just just have to approve a transaction, via the family account. With this, a whole new system comes inside the UPI application”, said Mohit Bedi Co-Founder & CBO at Kiwi, a third party payments application.


This is similar to how minors can be added to their parents' accounts as authorised users and be issued a card. In this case, a minor or an individual without a bank account will be added to a ‘family account’ on the UPI app, Bedi said.

These transactions can happen only via a savings account, and not via credit or credit line on UPI, other industry leaders said.

The RBI also increased the threshold of tax payments via the unified payments interface (UPI) to Rs. 5 lakh per transaction on Thursday.


Prior to this, the transaction limit was Rs. 1 lakh per transaction for tax payments. This is expected to increase ease of payments, as paying through NEFT requires the user to put in account numbers, while also increasing the speed of the transaction.

As add-on credit cards, now add-on UPI id wow! Cheque clearance system cts improvement also a great news.

 

[0abhi0]

NPCI has issued notification detailing out UPI CIRCLE in line with RBI announcement of DELEGATE PAYMENT

Two variation

1.Full Delegation -Where Secondary user once delegated can Pay UPTO 5000/TRANSACTION & 15000/MONTH on his CHOICE of Payment APP subject to limit set by PRIMARY acc holder without any transaction level process by Primary acc holder

2.Partial delegation -Where Secondary users initiate a transaction which is authorised by Primary acc holder on his UPI app using UPI pin
Transaction limit remains as per present limits

This second option is just like Payment request

One primary user can send 5 invites or delegate to 5 users

Manual entry of mobile number shall be restricted.

One secondary user can accept only one primary acc

Primary user can CHANGE LIMITS for secondary user at any time

One UPI acc can be used TO make UPI TRANSACTIONS by 1 PRIMARY & 5 Secondary users

Onboarding for UPI CIRCLE to start SOON as per NPCI & the process is via QR SCAN -UPI ID and then selecting mobile no - Send invite - once the secondary users accept invite the authorization & Limits can be set by primary user

Full details - https://www.npci.org.in/PDF/npci/upi/circular/2024/UPI-OC-No-201-FY-24-25-Introduction-of-UPI Circle–Delegated-Payments-for-secondary-users.pdf

Full delegation! What a feature Ohh now all my dad's money is literally mine. Lol!

 

[R@J]

NPCI has issued notification detailing out UPI CIRCLE in line with RBI announcement of DELEGATE PAYMENT

Two variation

1.Full Delegation -Where Secondary user once delegated can Pay UPTO 5000/TRANSACTION & 15000/MONTH on his CHOICE of Payment APP subject to limit set by PRIMARY acc holder without any transaction level process by Primary acc holder

2.Partial delegation -Where Secondary users initiate a transaction which is authorised by Primary acc holder on his UPI app using UPI pin
Transaction limit remains as per present limits

This second option is just like Payment request

One primary user can send 5 invites or delegate to 5 users

Manual entry of mobile number shall be restricted.

One secondary user can accept only one primary acc

Primary user can CHANGE LIMITS for secondary user at any time

One UPI acc can be used TO make UPI TRANSACTIONS by 1 PRIMARY & 5 Secondary users

Onboarding for UPI CIRCLE to start SOON as per NPCI & the process is via QR SCAN -UPI ID and then selecting mobile no - Send invite - once the secondary users accept invite the authorization & Limits can be set by primary user

Full details - https://www.npci.org.in/PDF/npci/upi/circular/2024/UPI-OC-No-201-FY-24-25-Introduction-of-UPI Circle–Delegated-Payments-for-secondary-users.pdf

Concept to bahut badhiya hai...specially for minors (who were till now majorly using account in family member's name......but the Jamtara gang will again get activated, trying to lure people into phishing/vishing and asking them to add/approve requests for delegation!!

 

[MrKant]

Concept to bahut badhiya hai...specially for minors (who were till now majorly using account in family member's name......but the Jamtara gang will again get activated, trying to lure people into phishing/vishing and asking them to add/approve requests for delegation!!

Yeah it’s the major concern

 

[cardoptimizer]

NPCI should keep delay/waitlist period of 10 days for full limit and keep like 200/500 only for 10 days. Enough time to deter jamtara crowd.

And I don't why day delay will be an issue for any people. Till now the feature wasn't there, now they can plan for future or wait for 10 days post activation.

 

[vine]

NPCI should keep delay/waitlist period of 10 days for full limit and keep like 200/500 only for 10 days. Enough time to deter jamtara crowd.

And I don't why day delay will be an issue for any people. Till now the feature wasn't there, now they can plan for future or wait for 10 days post activation.

Yes, this makes sense for new users.
What after that? Jamtara crowd too can wait for 10 days.