KOCHI: Reserve Bank of India is preparing a delegated payment system where multiple customers can make UPI payments using one bank account. Even if the latter does not have a bank account linked to the UPI ID, payment systems like Phone Pay and Google Pay can be used.

Currently, transactions can be done only by linking own accounts with UPI ID. With the delegated payment system, a customer can authorize someone who does not have a bank account to spend a specified amount through UPI. RBI hopes that the new system will help increase the number of UPI users significantly in the country. Details of the project will be released in coming days. This was announced in the Reserve Bank's monetary policy, which was announced yesterday. There are currently 42.4 crore UPI users in India.

UPI for children

With the new system, UPI payments can be made by minors using the parent's bank account. The parent has to approve the transaction. This is a similar mechanism to issuing add-on cards to children from a parent's account. The UPI ID linked to the parent's bank account can allow transactions by including minor children or others as additional customers.