New UPI Rules: RBI Allows Two Users Using Same Bank Account For UPI Payment

New UPI rule: Delegated Payments would allow an individual (primary user) to set a UPI transaction limit for another individual (secondary user) on the primary user’s bank account.

New Delhi: The Reserve Bank of India (RBI) on Thursday announced two major rules regarding UPI transactions. The RBI introduced a Delegated Payments facility for UPI allowing two users sharing the same bank account make UPI payments. 

RBI has also said that the UPI limit for tax payment matters has been increased from Rs 1 lakh to Rs 5 lakh per transaction.

"The Unified Payments Interface (UPI) has a very large user base of 424 million individuals. There is, however, potential for further expansion of the user base. It is proposed to introduce "Delegated Payments" in UPI. “Delegated Payments” would allow an individual (primary user) to set a UPI transaction limit for another individual (secondary user) on the primary user’s bank account. This product is expected to add to the reach and usage of digital payments across the country." 

The central bank said that a detailed instructions will be issued shortly.

Rahul Jain – CFO, NTT DATA Payment Services India said that allowing Delegated Payments can be a pivotal step in expanding the userbase of Unified Payments Interface (UPI). 

"Through this development, two family members can now use one bank account for making UPI payments. While we wait for more details, this initiative will further strengthen and enhance UPI payments especially in rural areas, where financial literacy is less, and one bank account is used by one family. This mechanism will enhance user convenience by ensuring effective control through the usage limit authorization feature. This will also empower consumer confidence with easy, safe, and hassle-free financial transactions, thereby contributing towards a digitally empowered nation," he added.

On enhancing Transaction Limits for Tax Payments through UPI, RBI said, "As direct and indirect tax payments are common, regular and high value, it has been decided to enhance the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction. Necessary instructions will be issued separately."