Here are the key updates from the RBI, presented in a straightforward and easy-to-understand bullet point format:
Delegate UPI Payments to a Trusted Person:
- RBI has introduced a feature called “Delegated Payments” for UPI.
- You can authorize someone else, like a family member, to make UPI payments using your bank account.
- You control the spending limit for these transactions.
This feature simplifies managing digital payments within families, allowing children or senior citizens to make payments without needing a separate bank account.
Example: Parents can allow their children to pay for school expenses directly from the parents’ bank account.
Cheques Will Clear Faster—Within Hours:
Currently, the Cheque Truncation System (CTS) takes up to two days to clear cheques. CTS processes cheques electronically, speeding up the clearing process by transmitting a digital image of the cheque.RBI’s new measures will ensure that cheques are cleared within a few hours, significantly reducing the waiting time.
Public Database to Identify Safe Digital Lending Apps:
Many digital lending apps falsely claim they are regulated by RBI, leading to issues like high interest rates and data privacy concerns.RBI will create a public repository of verified digital lending apps (DLAs) connected to RBI-regulated entities.This database will be available on RBI’s website, helping users identify legitimate apps and avoid scams.
Higher UPI Limit for Tax Payments:
UPI is widely used for its convenience, but there’s currently a ₹1 lakh limit per transaction.
RBI has raised this limit to ₹5 lakh for tax payments, making it easier to pay larger amounts through UPI.
This adjustment aligns with similar increases made for transactions like buying stocks, IPOs, and paying for insurance or education.
These updates from the RBI could significantly impact how you manage your finances, making transactions more convenient and secure.