NEW DELHI: In a latest move to facilitate higher payments through UPI, the RBI proposes to increase the per transaction limit under the payment system from Rs 1 lakh to Rs 5 lakh.
According to the RBI, the increased limit will further ease tax payments by consumers through UPI.
In another proposal, the RBI plans to allow delegated payments through the UPI to further deepen the reach and usage of digital payments.
“This would enable an individual to allow another individual 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,” said the RBI in a statement while announcing its Monetary Policy on Thursday.
In a couple of more user/borrower-centric announcements, the banking regulator has proposed a public repository of digital lending apps deployed by its regulated entities like banks and financial institutions. The move aims to curb the problems arising from unauthorised digital lending apps.
Banks and financial institutions will report and update information about their lending apps in this repository. This measure will help consumers to identify unauthorised lending apps.
In yet another announcement, the RBI has proposed to increase the frequency of reporting of credit information by lenders to credit information companies to a fortnightly basis or at shorter intervals.
At present, lenders are required to report credit information to CICs monthly or at such shorter intervals as may be agreed between the lenders and the CICs.
“Consequently, borrowers will benefit from faster updation of their credit information, especially when they repay their loans. The lenders, on their part, will be able to make better risk assessment of borrowers,” says the RBI.