Big Boost For UPI Payments: RBI Soon to Launch Digital Payments For Feature Phone Users | Details Here

Giving further details, Shaktikanta Das said the RBI has proposed three measures to make UPI payments simpler for consumers across the country.

Advertisement

New Delhi: While releasing the RBI Monetary Policy, RBI Governor Shaktikanta Das on Wednesday announced that the central bank will launch digital payment systems for feature phones. With this announcement, the central bank will allow Unified Payments Interface-based (UPI) products to be available on feature phones. The latest move will make internet-free UPI payments system a possibility in the days to come.

Advertising
Advertising

Giving further details, Shaktikanta Das proposed three measures to make UPI payments simpler for consumers across the country.

He said that the UPI is the single largest retail payments systems in the country in terms of volume of transactions, indicating its wide acceptance particularly for small value payments.

Also Read

More Business News

He further added that to make digital payments more inclusive, ease transactions for consumers, facilitate greater participation of retail customers in various segments of the financial markets and enhance the capacity of service providers, it is proposed to launch UPI-based payment products for feature phone users leveraging on the Reserve Bank's regulatory Sandbox on Retail Payments.

Advertisement

He also said the process will be made smooth for small value transactions. "Make the process flow for small value transactions simpler through a mechanism of 'on-device' wallet in UPI applications," he added.

During the press briefing, the RBI governor proposed to enhance the transaction limit for payments through UPI for the Retail Direct Scheme for investment in G-secs and Initial Public Offering (IPO) applications from Rs 2 lakh to Rs 5 lakh.

Saying that the RBI has been making efforts to facilitate greater participation of retail customers in financial markets, the governor said the UPI has become a popular payment option for Initial Public Offerings (IPOs) since its availability from January 01, 20194.

It was reported that IPO applications of Rs 2 to Rs 5 lakh constitute approximately 10 per cent of subscription applications. However, the transaction limit in the UPI was enhanced from Rs 1 lakh to Rs 2 lakh in March 2020.

To encourage the use of UPI by retail investors, the RBI said it has proposed to enhance the transaction limit for payments through UPI for retail Direct Scheme and IPO applications from Rs 2 lakh to Rs 5 lakh.

For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Entertainment News on India.com.

Published Date:December 8, 2021 9:29 PM IST

Updated Date:December 8, 2021 9:43 PM IST

Topics