The RBI advocated an “on-device” wallet in UPI apps to save banking systems’ resources without affecting the user’s transaction experience.
The RBI has risked facilitating small-value transactions on the Unified Payments Interface (UPI) platform using an “on-device” wallet in UPI applications. This will assist in relieving the load on the banking system while also simplifying the transaction procedure.
The RBI has also revealed that it will roll out UPI-based digital payment options for over 440 million people who use feature phones. These users have limited access to novel payment options, and the available ones have not been well received.
According to the RBI, 50% of UPI transactions are under Rs 200, and these low-value transactions consume a large amount of the banking system’s capacity and resources. It can sometimes cause client dissatisfaction owing to transaction problems.
“It is thus suggested to enable a simpler process flow by facilitating small-value commerce via an “on-device” billfold in the UPI app, which will preserve the banks’ system resources without affecting the user’s transaction experience,” the RBI stated.
“It is thus recommended to enable a more straightforward procedure flow by relieving small-value dealings via an “on-device” billfold in the UPI app, which will preserve banks’ system resources without affecting the user’s transaction experience,” the RBI stated.
According to sources, the wallet feature would only be available for Rs 200 or fewer transactions, as the primary goal is to avoid clogging the banking system with such minor transactions. The maximum amount that customers can put into their wallet would be roughly Rs 2,000. Microtransactions are also driving cash usage; hence bringing these transactions on the UPI platform is a goal. According to the RBI, 50% of UPI transactions are under Rs 200, and these low-value transactions consume a large amount of banking system capacity and resources. It can sometimes cause client dissatisfaction owing to transaction problems.
“Low or micro-ticket offline transactions are the only route to scale to a billion a day payment volume,” Dilip Asbe, CEO of the National Payments Corporation of India (NPCI), the umbrella organization for retail digital payments, wrote on Twitter. It will deliver a better customer experience (faster checkout), and we will make sure that onboarding is seamless and straightforward.”
Consumers will be able to deposit an utmost of Rs 2,000 into their wallets. According to sources, the wallet feature would only be available for Rs 200 or fewer transactions, as the primary purpose is to prevent minor transactions from cluttering the banking system. Microtransactions drive cash usage, so adding them to the UPI platform is a goal.
“Low or micro-ticket offline transactions are the only route to scale to a billion a day payment volume,” Dilip Asbe, CEO of the National Payments Corporation of India (NPCI), the umbrella organization for retail digital payments, wrote on Twitter. It will deliver a better customer experience (faster checkout), and we will make sure that onboarding is seamless and straightforward.”
Experts believe that the RBI’s initiatives will bring UPI-based payments on feature phones into the mainstream of digital payments.
As a result of the regulatory sandbox for retail payments, numerous innovators have developed solutions for feature phone payments, which RBI will leverage to facilitate UPI-based digital payment solutions on feature phones.
“It’s a gamechanger for the common man in India,” said Bipin Preet Singh, MD, co-founder and CEO of MobiKwik. “It’s a gamechanger for the common man in India who can now be eligible for additional financial assistance such as Buy Now Pay Later, digital insurance, and small-ticket loans as well.”
This release is articulated by Prittle Prattle News in the form of an authored article.
