The RBI has proposed launching UPI-based payment products for feature phone users, leveraging innovative products from its Retail Payments Regulatory Sandbox. Governor Shaktikanta Das announced this on Wednesday as part of the monetary policy review, stating that it aims to deepen digital payments and make them more inclusive.
Concerted efforts by all stakeholders have led to a significant increase in digital payments in recent years. There have, however, been some concerns on the reasonableness of various charges incurred by customers for digital payments through credit cards, debit cards, prepaid payment instruments (cards and wallets), unified payments interface (UPI) and the like. The RBI has proposed to release a discussion paper on various charges in the payment system to have a holistic view of the issues involved and possible approaches to mitigating the concerns so as to make digital transactions more affordable.
It is also proposed to make the process flow for small value transactions simpler through a mechanism of ‘on-device’ wallet in UPI applications and enhance the transaction limit for payments through UPI for the Retail Direct Scheme for investment in G-secs and IPO applications from ₹2 lakh to ₹5 lakh.