RBI MPC meeting: New UPI feature to enable multiple users to share bank account for making transactions; here’s how

The Reserve Bank of India (RBI) Governor Saktikanta Das on Thursday, August 8, announced that Delegated Payments through a Unified Payments Interface (UPI) will enable a user to authorise another user to carry out UPI transactions from the former's bank account.

The novel feature aims to give users an opportunity to grant access to another person who will be capable of carrying out UPI transactions through the original account holder's bank up to a specified limit, as per the central bank's statement.

“It is proposed to introduce a facility of ‘Delegated Payments’ in UPI. This would enable an individual (primary user) to allow another individual (secondary user) to make UPI transactions up to a limit from the primary user’s bank account without the need for the secondary user to have a separate bank account linked to UPI,” Governor Das said while announcing the outcome of the RBI's monetary policy meeting.

The monetary policy committee on Thursday kept the repo rate unchanged at 6.5 per cent for the ninth time in a row.

With the new feature, the Reserve Bank aims to increase the reach and capabilities of digital payments to increase UPI usage in the country.

“This will further deepen the reach and usage of digital payments,” said Das.

Governor Das also announced an increase in the transaction limits to ₹5 lakh, compared to the earlier ₹1 lakh for payment of tax digitally through UPI, as per the statement. The banking regulator aims to further ease the process of tax payments with this move.

The RBI's monetary policy meeting kept the key benchmark interest rate, the repo rate, unchanged at 6.5 per cent as the central bank maintains its “withdrawal of accommodation” policy. The RBI's GDP growth estimates are at 7.2 per cent for the financial year 2024-25. The central bank also said that inflation is a disinflationary trend, but volatile food inflation remains an area of concern.

“The RBI’s decision to keep rates unchanged is on expected lines with an intention to keep inflation under check. While the RBI is focused on reining in inflation within its target limit, the expectation of a good monsoon may prompt the apex bank to lower interest rates in the subsequent months thereby further propelling real estate sales momentum and also providing an opportunity to perspective homebuyers to enter in the market," said Pradeep Aggarwal, Founder and Chairman of Signature Global (India) Ltd. 

"While portraying a robust forecast for economic growth, the RBI’s all-round efforts will positively impact homebuyers sentiments and industry as well," Aggarwal added.