Reserve Bank of India (RBI) has introduced three key initiatives to further strengthen the country’s digital payments sector.
The newly launched initiatives include, UPI Lite, RuPay Credit Card on Unified Payments Interface (UPI), and Bharat BillPay Cross-Border Bill Payments.
According to the National Payments Corp of India (NPCI), UPI Lite will offer a solution that facilitates faster and easy low-value transactions.
Currently, half of transactions made through UPI in India is less than INR200 ($2.5).
The newly launched UPI Lite will allow consumers to make small-value payments up to INR200 in a ‘near-offline’ mode via BHIM App wallet.
UPI Lite will also minimise the debit load on the core banking system. It will pave way for processing a billion transactions per day through UPI.
At present, Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, Union Bank of India and Utkarsh Small Finance Bank, will enable payments through UPI Lite.
RuPay Credit Card on UPI and Bharat BillPay Cross-Border Bill Payments aim to make bill payments easier for people who reside out of India but maintain a house in India.
As part of the new initiative, RuPay Credit Cards will be connected to a virtual payment address (VPA). Currently, only debit cards are permitted to be linked with the platform.
This linking will enable safe and secure payments initially for Punjab National Bank, Union Bank of India and Indian Bank customers through BHIM App.
The new Bharat BillPay Cross-Border Bill Payments solution is designed to help Indians living abroad with their international money transfers.
It will enable NRIs to pay utility, water, and telephone bills for their families in India.
This facility will be first provided by Federal Bank in collaboration with UAE’s Lulu Exchange.