Big Update: Make Payments Without a Bank Account – New UPI Feature Explained
In India, digital payment methods have become very popular, with UPI (Unified Payments Interface) being widely used for transactions. From small shops to large malls, people use UPI to easily transfer money. The National Payments Corporation of India (NPCI) frequently updates UPI to improve its features. Recently, a significant change has been introduced: you can now make UPI payments even if you don’t have a bank account. Here’s a detailed look at this new development and how it works.
What is the New Change?
The recent update aims to make UPI accessible to a broader audience. Here’s how it works:
- No Bank Account Needed: Previously, using UPI required having a bank account linked with your Aadhaar (biometric ID) and mobile number. With this new change, individuals without a bank account can also use UPI for transactions.
- Purpose of the Change: The goal of this update is to extend UPI’s reach to more people, making it easier for those who do not have a traditional bank account to participate in digital transactions.
How Will Payments Work?
With this new feature, payments can be made through a system called the ‘Delegated Payment System.’ Here’s how it operates:
- Using Family Accounts: If you don’t have a bank account, you can make payments using the UPI account of a family member who does. For example, if someone in your family has a savings account, you can use their UPI account to complete transactions.
- How It Works: The family member with the bank account will grant permission to you to use their UPI account. You can then make payments from your mobile phone, using the same UPI interface as if it were your own account.
Who Can Benefit from This?
This new feature has specific eligibility criteria:
- Savings Account Holders: The facility is available only to those who have a savings account. If you have a credit card or a loan account, you won’t be able to use this feature.
- Control and Permission: The primary account holder (the person with the savings account) controls the usage. They can decide who is allowed to make payments using their account. Once permission is granted, the authorized user can make UPI payments directly from their mobile device.
Expected Impact
NPCI believes this new feature will significantly increase UPI usage. By making UPI accessible to individuals without bank accounts, the system expects to see a rise in transactions and broader adoption of digital payments.
Summary
The recent UPI update allows individuals without bank accounts to make payments using the ‘Delegated Payment System.’ This change is intended to make UPI accessible to more people and simplify digital transactions.
- Application: You can use this feature if you have a family member with a savings account who grants you permission.
- Eligibility: The facility is available only to savings account holders, not to those with credit cards or loans.
- Control: The main account holder controls who can use their UPI account for payments.
This update is expected to make UPI payments more widespread and convenient for a larger number of people.
