The RBI is planning to come out with UPI-based payment products for feature phone users, which will be launched by leveraging on innovative products from the central bank’s Regulatory Sandbox on retail payments.
This is being done as part of steps 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, the RBI said.
The central bank has also proposed to make the process flow for small value transactions simpler through a mechanism of ‘on-device’ wallet in UPI applications. It has also enhanced the transaction limit for payments through UPI for the Retail Direct Scheme for investment in G-secs and initial public offering (IPO) applications from Rs 2 lakh to Rs 5 lakh.
Unified Payments Interface (UPI) is India’s single largest retail payment system in terms of volume of transactions, particularly for small value payments.