RBI To Launch UPI Delegated Payments: Multiple Users, One Account

UPI payments are set to become even more convenient, as family members will soon be able to access a single UPI account with the primary user's consent. This new feature, announced by the Reserve Bank of India ( RBI ), will simplify digital transactions for families, making it easier for spouses, children, or elderly parents to use the same account. The facility is known as Delegated Payments .

After the recent monetary policy meeting, RBI Governor Shaktikanta Das introduced this feature. With UPI Delegated Payments, the primary account holder can authorize others to use their UPI account for transactions. Although the bank account remains singular, multiple individuals can perform UPI transactions using the same account. Notably, the authorized user won’t need a separate bank account linked to UPI, making the process smoother and more efficient.

Simplifying Digital Payments with UPI
According to the RBI, this feature will simplify digital payments, particularly for individuals who wish to conduct transactions on behalf of other family members. The concept of Delegated Payments will allow multiple people to use a single UPI account, similar to how multiple users can use a shared credit card.

Although this feature has not yet been implemented, the RBI confirmed that it is actively working on it. Currently, UPI payments are typically private, with one UPI ID linked to a single bank account and limited to a single user. The introduction of UPI Delegated Payments would mark a significant change, allowing several people to use a UPI account for payments at the same time.

What Are UPI Delegated Payments?
In simple terms, the primary user of a UPI account will hold master access and can grant others permission to make payments from the account. This change is aimed at boosting the popularity and usability of UPI, which has already become a widely accepted payment method in India and many other countries. The real-time transaction and balance updates have made UPI a preferred method of digital payments across urban and rural areas.

Key Announcements from the RBI Meeting
In addition to the UPI Delegated Payments feature, the RBI also made other significant announcements. The limit for tax payments through UPI has been raised from ₹1 lakh to ₹5 lakh, making it easier for individuals to pay larger amounts of tax using UPI.

Furthermore, the RBI’s Monetary Policy Committee decided to keep the repo rate unchanged at 6.5% for the ninth consecutive time on August 8, 2024.

These developments mark a major step towards making UPI even more user-friendly and accessible to all.