The Reserve Bank of India on September 20th, 2022 introduced three new initiatives in the Digital Payments Space. The initiatives were introduced by the RBI Governor Shaktikanta Das at the Global Fintech Fest 2022.
- UPI LITE
The BHIM App will enable UPI Lite that would allow faster low-value transactions in a near-offline mode. The upper transactions limit will be set at INR 200 thus ensuring less burden in the core banking system. Following banks account holders will be able to use UPI Lite: Kotak Mahindra Bank, HDFC Bank, Canara Bank, Indian Bank, Punjab National Bank, Union Bank of India, Utkarsh Small Finance Bank and the State Bank of India.
- RUPAY CREDIT CARDS AND THE UPI
For the first time, RuPay Credit Cards will also be operational on the UPI. The first ones to use this scheme are National Bank, Union Bank of India, and Indian Bank customers. The report claims that the credit card spending in India rose to INR 87,647 crore last month across both the e-commerce and point-of-sale segments, and this initiative will expand the market for credit by almost five times.
- CROSS-BORDER BILL PAYMENTS
Bharat BillPay Cross-Border Payments is stated to smooth the process of paying bills for Indian residents abroad with houses in the country.
It would be interesting to watch this space closely and witness the developments further. Stay tuned to AK & Partners to keep up with the changes that may follow.