The National Payments Corporation of India (NCPI) has unveiled new features for its Unified Payments Interface (UPI) as part of its effort to make digital payments more convenient for users.
It has now launched UPI Circle for Indian residents and non-resident Indians (NRIs) to ease transaction processing and provide security through digital means while facilitating more access and convenience. NPCI has also introduced UPI-PayNow link in collaboration with Singapore’s PayNow, with the aim of making cross-border payments seamless and low-cost.
UPI Circle: Shared Account Management
UPI Circle is a new innovative feature from NPCI. It allows two people to control one bank account for making digital transactions. It is very useful for families, caretakers, or others with a single holder controlling the digital payment ecosystem.
Users can either completely delegate payment authorisation to the secondary user and allow him/her to make a transaction up to a limit of Rs 15,000 in a month, or partially delegate responsibility where all payments require an approval from the primary user. This allows flexibility and safe, efficient management of shared finances.
UPI-PayNow: Cross-Border Transactions
NPCI has also introduced UPI-PayNow link in collaboration with Singapore’s PayNow, with the aim of making cross-border payments seamless and low-cost. Users will be able to transfer funds instantly through their UPI IDs, mobile numbers, or VPAs.
The Indian banks involved are Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank, and the State Bank of India.
In addition to these, a Singaporean non-banking finance institution, the Liquid Group with Singapore will also be the other involved party associated with this proposition. The limit for this per day transaction shall be Rs 60,000 (SDG 1,000). This initiative seamlessly connects two borders of financial systems and facilitates both individuals as well as corporates.
Instant Loans Through UPI
In September 2023, NPCI launched instant loans on UPI, allowing users to get pre-approved credit directly through UPI apps such as BHIM, Paytm, GPay, and PayZapp. Banks and financial institutions assess the creditworthiness of the users and lend money to them with lower interest rates than traditional credit cards.
It doesn’t require elaborate paperwork. Therefore, in any emergency, this money is readily available. This is very helpful for people who come from low-income groups, since it also financially empowers them without collateral.
UPI Lite: Small Transaction Simplifier
One very recently launched product is UPI Lite, which the latter released in September 2022, for the purpose of streamlining small-value transactions. The facility has enabled the users to make payments up to Rs 5,000 without a PIN, thus making it faster. There is ease while topping up the funds through BHIM, Paytm, and Google Pay.
This list of participating banks includes names, such as Canara Bank, HDFC Bank, Indian Bank, and others. UPI Lite is apt for near-daily low-value transactions like grocery bills or transport fares.
UPI 123PAY: No Internet Required For Payment
UPI 123PAY was launched in March 2022. The service is meant for feature phones. This facility helps a user make a digital payment with no internet; the transaction will be completed when the number will be dialled with the aid of UPI PIN.
This service is available in 12 languages, including Hindi, English and regional languages, hence it can be reached by rural and semi-urban populations. UPI 123PAY reaches out to digitally underprivileged sections of society as it has a per-transaction limit of Rs 10,000.
UPI for NRIs: Global Convenience
UPI was opened for NRIs from 2024. Now, international mobile numbers have been connected with NRE or NRO accounts. The NRIs in countries like US, UAE, UK, Australia, Singapore, and many more do not need to have an Indian mobile number to pay bills, transfer money, or to make a purchase in India.
These features thus mark the intent of NPCI to push for the development of digital payments alongside the RBI and global partners, such as PayNow. These aspects of streamlining cross-border transactions, providing shared financial management, and inclusiveness ensure that UPI becomes an innovative force for the global digital payment ecosystem.
