Mumbai : The RBI has proposed to offer a simpler process flow by enabling small value transactions through an “On-device” wallet in UPI app. The move is aimed to conserve banks’ system resources, without any change in the transaction experience for the user.
This was announced by RBI Governor Shaktikanta Das during his bi-monthly monetary policy address this morning.
“UPI is the single largest retail payment system in the country in terms of volume of transactions (14 crore transactions per day, October 2021)3. One of the initial objectives of UPI was to replace cash for low value transactions. Transaction data analysis shows that 50 per cent transactions through UPI were below ₹ 200, indicating its success. These low value transactions, however, utilise significant system capacity and resources, at times leading to customer inconvenience due to transaction failures because of issues related to connectivity. It is, therefore, proposed to offer a simpler process flow by enabling small value transactions through an “On-device” wallet in UPI app which will conserve banks’ system resources, without any change in the transaction experience for the user” RBI said.