The Reserve Bank of India (RBI) has announced exciting new measures aimed at enhancing the security and usability of digital payment systems, particularly through Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).
Beneficiary Account Name Look-Up Facility
In a bid to combat fraud and reduce the likelihood of erroneous credits, the RBI is introducing a new facility that allows remitters to verify the name of the beneficiary before initiating a transfer. RBI Governor Shaktikanta Das emphasized that this feature mirrors the existing capabilities in UPI and IMPS, where users can confirm the recipient’s name prior to completing a transaction. By simply entering the beneficiary’s account number and branch IFSC code, users will be able to view the account holder’s name, thereby increasing confidence in the transaction process.
Enhanced UPI Limits
In addition to the name verification feature, the RBI has also raised the transaction limits for UPI services to facilitate smoother transactions:
- UPI 123 Pay: The transaction limit has doubled from ₹5,000 to ₹10,000, making it easier for users of feature phones to engage in higher-value transactions.
- UPI Lite: The wallet limit has increased from ₹2,000 to ₹5,000, with the per-transaction limit rising from ₹500 to ₹1,000. This service allows for small-value transactions without the need for PIN authentication, providing a quick and seamless payment experience.
Expected Benefits:
- Increased Security: The new beneficiary verification process aims to significantly enhance the security of RTGS and NEFT transactions, reducing the risk of fraud.
- User Convenience: The straightforward verification process and the increased transaction limits are designed to make digital payments more user-friendly.
- Encouragement of Digital Adoption: With higher transaction limits, these measures are expected to boost the adoption of digital payments, particularly among users with feature phones and those conducting small-value transactions.
Overall, these initiatives by the RBI represent a significant step towards making digital transactions safer, more convenient, and more accessible for everyone. The question now is: will these changes fundamentally alter how people engage with digital payments? Only time will tell, but the potential for positive impact is clear.