Explained: What is ‘UPI Delegated Payments’ and how with it RBI solves one of the biggest UPI 'problems' of many users

The Reserve Bank of India (RBI) is set to introduce a groundbreaking feature called "Delegated Payments" within the Unified Payments Interface (UPI) system. This feature will allow a primary user to authorise a secondary user, such as a family member, to conduct UPI transactions directly from the primary user's bank account, up to a specified limit.This initiative aims to further expand the reach of digital payments in India, catering to the growing user base and enhancing convenience.

Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI), regulated by the RBI. UPI allows instant money transfers between bank accounts through a single mobile application. It operates 24/7, ensuring that transactions can be completed instantly at any time, regardless of banking hours.
When making online purchases, UPI can be selected as a payment option. The user enters their UPI ID, after which a payment request is sent to their UPI app, such as BHIM. The user then enters their UPI PIN to authorise the payment, completing the transaction instantly.

UPI Delegated Payments is a proposed feature that will allow a primary user (such as a parent or employer) to authorise a secondary user (such as a child or employee) to make UPI transactions from the primary user’s bank account. The primary user can set a transaction limit for the secondary user, ensuring that only authorised amounts can be spent. This feature is expected to broaden the usage of UPI across different demographics, including those who may not have their own bank accounts or those who require financial supervision.



UPI is built on the Immediate Payment Service (IMPS) infrastructure and supports instant money transfers between any two bank accounts. Below are the steps to initiate a UPI transaction:


UPI supports multiple channels for fund transfers:


No stop payment: Once a UPI transaction is initiated, it cannot be stopped or reversed.
Transaction limits:



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