While announcing the MPC’s policy decisions on Wednesday, RBI Governor Shaktikanta Das stated that the central bank has decided to further facilitate recurring payments of larger value, such as subscriptions, insurance premiums, education fees, and so on, by raising the limit from Rs 5,000 to Rs 15,000 per transaction. This will further leverage the benefits available under the framework and augment customer convenience.
The framework for processing of e-mandate based recurring payments was introduced by the RBI, keeping in mind the benefits of convenience, safety and security to the users. Under this framework, over 6.25 crore mandates have been registered in favour of a large number of domestic and over 3,400 international merchants.
RuPay credit cards will be linked to UPI
UPI has become the most inclusive mode of payment in India with over 26 crore unique users and 5 crore merchants on the platform. In May 2022 alone, about 594 crore transactions amounting to Rs 10.4 lakh crore were processed through UPI. At present, UPI facilitates transactions by linking savings/current accounts through users’ debit cards. RBI has now proposed to allow linking of credit cards on the UPI platform.
To begin with, the RuPay credit cards will be linked to the UPI platform. This will provide additional convenience to users and enhance the scope of digital payments.
The Payments Infrastructure Development Fund (PIDF) Scheme was operationalised by the Reserve Bank in January 2021 to incentivise the deployment of payment acceptance infrastructure such as physical Point of Sale (PoS), mPoS (mobile PoS), Quick Response (QR) codes in Tier-3 to 6 centres and North Eastern States. Beneficiaries of PM SVANidhi Scheme in Tier-1 and 2 centres were included in August 2021. As at end-April 2022, over 1.18 crore new touch points have been deployed under the Scheme against a target of 90 lakh touch points to be deployed over three years (till end-2023). It is now proposed to make modifications to the PIDF scheme by enhancing the subsidy amount, simplifying the subsidy claim process and other steps. This will further accelerate and augment the deployment of payment acceptance infrastructure in the targeted geographies.