The Reserve Bank of India (RBI) is set to launch a new delegated UPI payment system, which will allow multiple users to make payments from a single bank account. This innovative system will enable individuals without their own bank accounts to perform UPI transactions through a shared account. Currently, UPI transactions require that the payer’s bank account be directly linked to their UPI ID. However, the new system will permit account holders to authorize others to spend a specified amount through UPI, even if the authorized users don’t have their own linked bank accounts. This development aims to significantly expand the reach and usage of UPI in India, which currently has 42.4 crore users.
Additionally, the new system will facilitate UPI transactions for minors using their parents’ bank accounts, with parental approval required for each transaction. This approach mirrors the concept of add-on cards issued by banks, where transactions are controlled by the primary account holder. Details about this system will be unveiled soon, as part of the RBI’s recent monetary policy announcement.
