Three new UPI-related announcements made this week

Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS infrastructure and allows you to instantly transfer money between any two parties' bank accounts.

All payments are instant and 24/7, regardless of your bank's working hours.

The Governor of the RBI introduced UPI Circle. This feature allows UPI users to assign payments to secondary users they trust. UPI Circle enables UPI users to become primary users and connect with trusted secondary users on the UPI App in order to delegate either partial or full payments. When fully delegated, the primary user gives permission to a trusted secondary user to initiate and complete UPI transactions within specified spending limits. With partial delegation, the primary user allows the secondary user to initiate payment requests. The primary user then finalizes the UPI transaction with their UPI Pin. A primary user can assign up to 5 secondary users, and a secondary user can only accept delegation from one primary user.

Full delegation allows a maximum monthly limit of Rs15,000 per delegation and a maximum per transaction limit of Rs 5000. Existing UPI limits shall be applicable in case of partial delegation.

As per an HDFC Bank press release, "A feature that allows the primary account holder in any UPI application to assign a secondary user to make payments. The Delegate Payment through UPI feature allows secondary users to make transactions using the customer's primary account, rather than setting up separate accounts. HDFC Bank has launched this feature in partnership with KreditPe."

The Deputy Governor of RBI, T. Rabi Sankar, revealed new product offerings designed to modernize the ATM infrastructure in India. These were presented in conjunction with the National Payments Corporation of India (NPCI) at the Global Fintech Fest (GFF) 2024 and consist of UPI Interoperable Cash Deposit (UPI-ICD) and the introduction of Digital Banking Units (DBUs) by banks.

Customers can use UPI ICD to deposit cash at ATMs operated by banks and white label ATM operators (WLAOs) using UPI to their own bank account or any other bank account without requiring a physical card. These ATMs are equipped with cash recycler machines that handle both cash deposits and withdrawals. By utilizing their mobile numbers linked to UPI, virtual payment addresses (VPA), and account IFSCs, customers can conveniently make cash deposits, creating a more streamlined, inclusive, and accessible process. The banks will gradually introduce these features, providing consumers with access to them.

"ATM machines with open architecture can host bank apps positioning them as DBUs offering cash deposits, withdrawals and other banking services such as opening bank accounts, applying for credit cards, initiate fixed deposits, applying for safe deposit lockers, etc," stated an NPCI press release.

Personalising Experience on UPI - Merchant EMI - SmartHub Vyapar: "HDFC Bank introduces personalised offers, promotions, instant discounts and credit card EMI options through UPI at the time of making a payment. This feature enables tailored banking experiences and streamline payments," stated an HDFC Bank press release.