NPCI To Upgrade UPI Service, Allowing Users to Make Payments Without Bank Account | Personal Finance News

The Delegated Payment System is trying to make UPI accessible to more people, especially those who do not have bank accounts. However, they also want everyone to use UPI under the ‘Digital India’ banner, including those who do not have a bank account.

Bank Account Linked To Mobile Number And Aadhaar Card

To Use UPI, you must have a bank account linked to your mobile number and Aadhaar card. You can create a UPI account and make digital payments using several apps. However, NPCI is expanding this service to those who don’t have bank accounts. 

What Is Delegated Payment System?

With this system, family members can use the same UPI account even if they do not have their bank accounts. For example, if one family member has a bank account with an active UPI service, others can also make payments from the same UPI account using their phones. 

It is important to note that this service will only apply to savings accounts, not credit cards or other loan accounts. Notably, the person who holds the main account will have complete control and can grant permission to others to make payments.

How The New Delegated Payment System Will Work?

Once the new feature is launched, the NPCI will inform all UPI users that they can set up their savings accounts for others to use. Users can choose to activate this feature, after which their identity may be verified. Once this system is activated, multiple people will be able to make payments from the same UPI account.

However, the NPCI has not yet provided details on transaction limits or other specifics, but it is expected that this new feature will significantly increase UPI usage. Payments made through UPI could increase by 25 to 30 per cent.