RBI proposes to introduce a facility of "Delegated Payments" in UPI; Public Repository will help the consumers to identify the unauthorised lending apps
FinTech BizNews Service
Mumbai, August 8, 2024: The Reserve Bank has taken several measures for the orderly development of the digital lending ecosystem in India. “As a further measure in this direction and to address the problems arising from unauthorised digital lending apps (DLAs), the Reserve Bank proposes to create a public repository of DLAs deployed by its regulated entities. The regulated entities (REs) will report and update information about their DLAs in this repository. This measure will help the consumers to identify the unauthorised lending apps,” said Shaktikanta Das, Governor, Reserve Bank of India, while announcing the decisions of the MPC on Thursday.
Frequency of Reporting of Credit Information to Credit Information Companies
The availability of accurate credit information is vital for both lenders and borrowers. At present, lenders are required to report credit information to credit information companies (CICs) on a monthly basis or at such shorter intervals as may be agreed between the lenders and the CICs. It is proposed to increase the frequency of reporting of credit information to a fortnightly basis or at shorter intervals. Consequently, borrowers will benefit from faster updation of their credit information, especially when they repay their loans. The lenders, on their part, will be able to make better risk assessment of borrowers.
Enhancing Transaction Limit for Tax Payments through UPI
Currently, the transaction limit for UPI is Rs1 lakh except for certain category of payments which have higher transaction limits. It has now been decided to enhance the limit for tax payments through UPI from Rs1 lakh to Rs5 lakh per transaction. This will further ease tax payments by consumers through UPI.
Introduction of ‘Delegated Payments’ through UPI
It is proposed to introduce a facility of "Delegated Payments" in UPI. This would enable an individual (primary user) to allow another individual (secondary user) to make UPI transactions up to a limit from the primary user’s bank account without the need for the secondary user to have a separate bank account linked to UPI. This will further deepen the reach and usage of digital payments.
Continuous Clearing of Cheques
At present, cheque clearing through Cheque Truncation System (CTS) operates in a batch processing mode and has a clearing cycle of up to two working days. It is proposed to reduce the clearing cycle by introducing continuous clearing with 'on-realisation-settlement’ in CTS. This means that cheques will be cleared within a few hours on the day of presentation. This will speed up cheque payments and benefit both the payer and the payee.
