RBI updates today we must discuss
Today, RBI has come up with 4 BIG updates that hardly anyone is discussing.
These changes can have a direct impact on your finances. So, let’s dive in.
1. You Can Authorise Someone Else To Make UPI Payments From Your Bank Account
The RBI governor proposed introducing a new feature called "Delegated Payments" for UPI. How will this help?
This allows a primary user (you) to authorize a secondary user (like a family member) to make UPI transactions using your bank account.
You can set the limit for these transactions.
This way, the secondary user doesn't need a separate bank account linked to UPI. So, this can be a convenient way to manage digital payments within families, making it easier and safer for everyone.
Use Case: Children can pay school or college-related expenses from their parents’ bank accounts. Some senior citizens can also authorise their kids to make certain payments on their behalf.
2. Cheques Are To Be Cleared Within A Few Hours Now
Right now, the Cheque Truncation System (CTS) takes up to two days to process cheques.
CTS is a process used by banks to clear cheques electronically. Instead of physically moving the cheque from one bank to another, CTS involves scanning the cheque and transmitting its image and related information digitally. This speeds up the clearing process.
RBI has announced measures to ensure continuous cheque clearing under the Cheque Truncation System (CTS). Once implemented, cheques would be cleared within hours of submission instead of the two days currently required.
3. Public Database To Spot Illegal Lending Apps
Many unethical digital lending apps claim they are regulated by the RBI.
These apps cause all sorts of problems, including data privacy issues, charging high interest rates, and unfair ways of getting money back.
RBI has proposed a solution for this.
The central bank will create a public repository of verified digital lending apps (DLAs) associated with RBI-regulated entities.
Regulated entities will report their apps to this public repository, which will be available on RBI’s website. It will be updated regularly as new apps are added or old ones are removed.
4. Increase In UPI Limit For Tax Payment
UPI is super popular for payments because it’s so easy to use.
Right now, you can only transfer up to ₹1 lakh at a time. Based on the various use cases, the central bank has periodically reviewed and enhanced the limits.
For instance, RBI has increased this limit for certain uses, such as buying stocks, IPOs, loan collections, insurance, medical, and education payments. Now, RBI has added tax payments to this list.
RBI has decided to up the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction. more
These changes can have a direct impact on your finances. So, let’s dive in.
1. You Can Authorise Someone Else To Make UPI Payments From Your Bank Account
The RBI governor proposed introducing a new feature called "Delegated Payments" for UPI. How will this help?
This allows a primary user (you) to authorize a secondary user (like a family member) to make UPI transactions using your bank account.
You can set the limit for these transactions.
This way, the secondary user doesn't need a separate bank account linked to UPI. So, this can be a convenient way to manage digital payments within families, making it easier and safer for everyone.
Use Case: Children can pay school or college-related expenses from their parents’ bank accounts. Some senior citizens can also authorise their kids to make certain payments on their behalf.
2. Cheques Are To Be Cleared Within A Few Hours Now
Right now, the Cheque Truncation System (CTS) takes up to two days to process cheques.
CTS is a process used by banks to clear cheques electronically. Instead of physically moving the cheque from one bank to another, CTS involves scanning the cheque and transmitting its image and related information digitally. This speeds up the clearing process.
RBI has announced measures to ensure continuous cheque clearing under the Cheque Truncation System (CTS). Once implemented, cheques would be cleared within hours of submission instead of the two days currently required.
3. Public Database To Spot Illegal Lending Apps
Many unethical digital lending apps claim they are regulated by the RBI.
These apps cause all sorts of problems, including data privacy issues, charging high interest rates, and unfair ways of getting money back.
RBI has proposed a solution for this.
The central bank will create a public repository of verified digital lending apps (DLAs) associated with RBI-regulated entities.
Regulated entities will report their apps to this public repository, which will be available on RBI’s website. It will be updated regularly as new apps are added or old ones are removed.
4. Increase In UPI Limit For Tax Payment
UPI is super popular for payments because it’s so easy to use.
Right now, you can only transfer up to ₹1 lakh at a time. Based on the various use cases, the central bank has periodically reviewed and enhanced the limits.
For instance, RBI has increased this limit for certain uses, such as buying stocks, IPOs, loan collections, insurance, medical, and education payments. Now, RBI has added tax payments to this list.
RBI has decided to up the limit for tax payments through UPI from ₹1 lakh to ₹5 lakh per transaction. more
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View all 9 comments Below 9 comments
Small steps with limited purpose use and hence not many are excited about it. 1. Authorising someone else to make payments is fraught with new issues. This will need safeguards. I am not to excited about it because as it is there are many scams in the digital space related to payments. 2. How many people use cheques these days? I have not use a cheque for over a year and no one has issued a cheque to me in the last 3-4 years. The same is teh case with most businesses. So this has limited functionality. Although the cheque truncation to clear cheques faster is not a new idea. It was started as a pilot project way back in 2008 but only partly implemented so far since 2011. 3. Spot illegal lending apps - Only time will tell how effective this will be. It is a good move though. 4. Higher limit for tax payments - This helps the government. How does it help the average citizen? Large payments by Corporate are not done using UPI. This has a limited use for a small set of people. How many people are paying tax using UPI? Really not too many. more
Aug 11
The cheque clearing within hours was already in vogue. About 4 years back I deposited HDFC BANK CHEQUE with LIC. It was cleared within 20 minutes which came a surprise to me. All the facilities are in the interest of clients with reasonable checks n balances. Giving ATM cards to children is more risky than restricted UPI payment facility. more
Aug 10
Authorizing someone to make the payment from your account is optional. So why talk about a risk? Simply do not authorize anyone if you do not trust. On the other hand it is a welcome step in the right direction.. It is still being done in many families. It is just similar to either or survivor operation if banking operations working very well. Why crib about it? more
Aug 09
What is the age to open a bank account?...instead of step -1, govt. could have removed 500 currency and control so many things....social peace is more important? more
Aug 09
The 1st step adds one more risk to all the existing ones with digital payments. 4th one is the actual giveaway, their sole aim is to collect taxes from the common man more
Aug 09
