RBI Introduces New UPI Guidelines: Two Users Can Now Use One Bank Account for Transactions

The Reserve Bank of India ( RBI ) has introduced a groundbreaking feature to the Unified Payments Interface (UPI), allowing two users to share a single bank account for digital transactions . This innovative move aims to broaden the scope of UPI payments, especially in rural areas where families often rely on one bank account.

Enhanced Flexibility with Delegated Payments
Under the new system, the primary account holder can authorize another individual to conduct UPI transactions using their account, within a specified limit. This enhancement simplifies digital payments for families with a single bank account, facilitating easier access to financial services for all members.

RBI Governor Shaktikanta Das highlighted that this update will enhance the reach of UPI, particularly benefiting rural regions by promoting more widespread use of digital payments.

Increased UPI Limit for Tax Payments
In addition to the new delegated payment feature, the RBI has raised the cap for tax payments via UPI. The maximum transaction limit for tax payments has been increased from Rs 1 lakh to Rs 5 lakh. This change is expected to streamline the process of paying taxes through UPI, making it more convenient for users.

UPI Transaction Statistics for July
UPI continues to show robust growth. In July, the total transaction value surpassed Rs 20 lakh crore for the third consecutive month, reaching Rs 20.64 lakh crore, up from Rs 20.07 lakh crore in June. The average daily transactions rose slightly to 46.5 crore, although the average transaction value dipped to Rs 66,590 crore from Rs 66,903 crore in the previous month.

The National Payments Corporation of India ( NPCI ) is also anticipated to release a circular regarding a 1.2% interchange fee for credit lines on UPI transactions, further impacting the digital payments landscape.

These updates reflect the RBI's ongoing efforts to enhance the efficiency and inclusivity of the UPI system, solidifying its role as a cornerstone of digital finance in India.