UPI will be extended to users of feature phones : RBI

UPI will be extended to users of feature phones : RBI Users of basic phones will soon be able to use the UPI service. The unified payments interface (UPI), the country's single largest retail payments system in terms of volume of transactions for small-value payments, is now only available on smartphones. "It is proposed to launch UPI-based payment products for feature phone users, leveraging innovative products from the RBI's regulatory sandbox on retail payments, to further deepen digital payments and make them more inclusive, to make transactions easier for consumers, to facilitate greater participation of retail customers in various segments of financial markets, and to enhance the capacity of service providers," the RBI said. The regulator has also advocated using a 'on-device' wallet in UPI applications to simplify the process flow for small-value transactions. It has also decided to increase the transaction limit for payments made through UPI for the Retail Direct Scheme for G-sec investments and IPO applications from 2 lakh to 5 lakh. "This initiative would help RBI reach out to underserved population or potential consumers located in low-connectivity areas by adopting cost-saving strategies to enable more access to digital payment methods," said Ajay Chaurasia, Head of Product at RupeeRedee, a digital lending app. "This, in turn, will assist India in achieving its national goal of financial inclusion by altering traditional payment methods," he added. The RBI has also agreed to publish a discussion paper on payment system charges. "In recent years, a concerted effort by all stakeholders has resulted in a huge increase in digital payments. The rationality of various charges charged by customers for digital payments via credit cards, debit cards, prepaid payment instruments [cards and wallets], UPI and the like has been questioned, according to the RBI. "A discussion paper on various costs in the payment system is planned to get a comprehensive picture of the issues involved and alternative measures to alleviating concerns so that digital transactions are more inexpensive," the RBI noted.