The introduction of UPI Delegated Payments is an exciting development in the Indian digital payments landscape. This feature will allow users to delegate payment authority to family members or others, enabling them to make UPI payments from a shared bank account.
Key Points about UPI Delegated Payments:
- Delegation of Payment Authority:
- Account holders can authorize others, such as family members, to make UPI payments from their bank account.
- This feature is useful for families where one person manages the finances but others need to make payments.
- Controlled Access:
- The primary account holder can set limits and permissions for the delegated users, ensuring control over how the account is used.
- Users can specify transaction limits, time-bound access, or restrictions on the types of payments that can be made.
- Security Features:
- To maintain security, the delegated payments will likely require additional authentication steps, such as OTPs (One-Time Passwords) or biometric verification.
- The account holder can revoke the delegated authority at any time, adding a layer of security.
- Benefits:
- Convenience: Families can manage their household expenses more efficiently.
- Flexibility: Allows elderly or less tech-savvy members to make digital payments through a trusted family member’s account.
- Control: The primary account holder maintains oversight over the payments made from their account.
- Implementation:
- This feature is expected to be rolled out by banks and UPI service providers in phases. Users will be able to activate this option through their bank’s UPI app or online banking portal.
Potential Use Cases:
- Household Management: A spouse or adult child can be authorized to pay utility bills or shopping expenses.
- Elder Care: Elderly parents can delegate payment authority to their children for managing their expenses.
- Business Use: Small business owners can allow employees to make payments without giving full account access.
This innovation in UPI functionality is likely to make digital payments more inclusive and adaptable to various household and business needs.
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