Reserve Bank of India Governor Shasikanta Das throughout the Monetary Policy press convention on the RBI Headquarters on Thursday.
| Photo Credit: Emmanual Yogini
The Reserve Bank of India on August 10 proposed to improve the per transaction fee limit to ₹500 for UPI Lite in offline mode and introduced different measures to additional deepen the attain and use of digital payments within the nation.
Presently, a limit of ₹200 per transaction and an general limit of ₹2,000 per fee instrument has been prescribed by the Reserve Bank for small worth digital payments in offline mode, together with for National Common Mobility Card (NCMC) and UPI Lite.
By eradicating the necessity for two-factor authentication for small worth transactions, these channels allow quicker, dependable, and contactless mode of payments for on a regular basis small worth payments, transit payments and so forth.
Explained | Daily limit on UPI transactions
“Since then, there have been demands for enhancing these limits. To encourage wider adoption of this mode of payments and bring in more use cases into this mode, it is now proposed to increase the per transaction limit to ₹500,” RBI Governor Shaktikanta Das stated.
The general limit is, nevertheless, retained at ₹2,000 to comprise the dangers related to rest of two-factor authentication and directions on this regard will probably be issued shortly, he added.
Conversational Payments on UPI
With the target of harnessing new applied sciences for enhancing the digital payments expertise for customers, Mr. Das stated, it’s proposed to allow ‘Conversational Payments’ on UPI, which is able to allow customers to have interaction in dialog with AI-powered methods to make payments and introduce offline payments on UPI utilizing Near Field Communication (NFC) expertise by means of ‘UPI-Lite’ on-device pockets.
UPI, with its ease of utilization, security and safety, and real-time characteristic, has remodeled the digital fee ecosystem in India. Addition of many new options over time have enabled UPI to facilitate various fee wants of the financial system.
As Artificial Intelligence (AI) is changing into more and more built-in into the digital financial system, conversational directions maintain immense potential in enhancing ease of use, and consequently attain, of the UPI system, he stated.
It is, due to this fact, proposed to launch an progressive fee mode viz., ‘Conversational Payments’ on UPI, that may allow customers to have interaction in a dialog with an AI-powered system to provoke and full transactions in a protected and safe setting, he stated.
This channel will probably be made obtainable in each smartphones and have phones-based UPI channels, thereby serving to within the deepening of digital penetration within the nation, he stated.
The facility will, initially, be obtainable in Hindi and English and can subsequently be made obtainable in additional Indian languages and directions to NPCI will probably be issued shortly, he added.
To improve the pace of small worth transactions on UPI, an on-device pockets referred to as ‘UPI-Lite’ was launched in September 2022 to optimise processing sources for banks, thereby lowering transaction failures.
The product has gained traction and presently processes greater than ten million transactions a month.
“To promote the use of UPI-Lite, it is proposed to facilitate offline transaction using Near Field Communication (NFC) technology. This feature will not only enable retail digital payments in situations where internet/telecom connectivity is weak or not available, it will also ensure speed, with minimal transaction declines. Instructions to NPCI will be issued shortly,” he stated.
