Soon, RBI to launch UPI-based payment products for feature phone users

New Delhi, Dec 08: The RBI Governor Shaktikanta Das on Wednesday, November 8, announced that UPI-based payment products will be launched for feature phone users.

He also announced to enhance the transaction limit to Rs 5 lakh from Rs 2 lakh for UPI payments for RBI's Retail Direct scheme and IPO offering applications.

Das, announcing the outcome of the Reserve Bank of India (RBI) Monetary Policy said that UPI is the single largest retail payment system in the country in terms of volume of transactions, indicating its wide acceptance, particularly for small value payments.

Shaktikanta Das proposed three measures to make UPI payments simpler for consumers across the country.

In order to further deepen digital payments and make them more inclusive, ease transactions for consumers, facilitate greater participation of retail customers in various segments of financial markets and enhance the capacity of service providers, it is proposed to

(i) launch UPI-based payment products for feature phone users, leveraging on innovative products from the RBI's Regulatory Sandbox on Retail Payments;

(ii) make the process flow for small value transactions simpler through a mechanism of 'on-device' wallet in UPI applications; and

(iii) enhance the transaction limit for payments through UPI for the Retail Direct Scheme for investment in G-secs and Initial Public Offering (IPO) applications from ₹2 lakh to ₹5 lakh.