The Reserve Bank of India introduced delegated payments through UPI during its August monetary policy. This would enable an individual (primary user) to allow another individual (secondary user) to make UPI transactions from the primary user’s bank account. The primary users would set the limit for such a transaction.

The RESERVE BANK OF INDIA (RBI) has introduce a new feature in the unified payments Interference(UPI) called ”DELEGATED PAYMENT ” .This feature enables users to authorize third-party applications to make payments on their behalf. It streamlines the payment process by allowing user to pre-approve transactions, either as one-time payments on a recurring basis without needing to manually authorized each transaction.

The initiative aim to make digital transactions more convenient while ensuring and control for user. It is particularly useful for service like utility payments, subscriptions, and other recuring transaction

“Delegated payments’’ INTRODUCED BY RBI FOR BILL PAYMENT :

1. Business and merchants: Small and large businesses can streamline their payments collection process by setting up  recurring or one-time payment with customers . This is especially for subscription-based services ,until bill payments, and other regular financial services.
2. Service providers: Companies offering services such as OTT platforms, gym membership, and online courses can use this feature to ensure timely payments without requiring customers to authorize each transaction individually.
3. Customers: For individuals, this feature reduces the hassle of repeatedly authorized payments for regular expenses like rent , utility bills and subscriptions .It provides peace of mind by automating payment while still offering the options to control and cancel if needed.
4. Financial Institution: banks and payments processors can integrate delegated payments. Into their services to offer customers  a more streamlined and efficient payments .This not only improves customer satisfaction but also reduces incidences of late payments ,benefiting both the financial institution and their customers.

“Delegated payments’’ feature on UPI can be a useful tool for families : 

1. Younger family : Members can take charge of managing finances for their elderly relatives. They set up delegated payments to make sure bills such as utilities, insurance premiums or medical subscriptions on time. This relieves the individual of the burden of keeping track of regular payments, which they might find challenging.
2. Students: Parents can oversee their children’s expenses while they are away at college. Delegated payments can be set up for rent ,tuition fee , or even on daily necessity .This system allows parents to manage finances without the need of their children to constantly approve or reminders for every transaction.
3. Dependents: For dependents needing financial help, like family member with disabilities , delegated payments handle all necessary transactions efficiently. caregivers oversee these payments, ensuring that obligations are met without needing the dependent to make each decision.
4. Shared Family Expenses: In households where family member expenses such as utilities or groceries , delegated payments handle these costs automatically. This system ensures that everyone pays on time and reduces the need for manual coordination and potential disagreements over missed payments.

Using delegated payments helps families manage their financial obligations better by making ensureing important payments consistently and on time. It also reduces stress and the need for constant oversight.

DELEGATED PAYMENTS : INTRODUCED BY RBI ARE A GAME CHANGER FOR UPI USER

SECURITY FEATURES FOR UPI USER :

Highlight the strong security measures in the place for delegated payments .Like two factors: authentications and transaction limits. This ensures that unauthorized access does not protect users money.

CONTROL AND FLEXIBILITY FOR USER:

Explain how users maintain full control over their payments. They can easily modify , pause, or cancel any delegated payments, giving them flexibility to manage their finances as needed.

ADOPTION BY UTILITY COMPANIES AND SERVICE PROVIDER:

Point out recent examples of major utility companies or service providers, such as telecoms or electricity providers .Starting to use payment through UPI .This shows the growing trust and usage of the feature.

INTEGRATION WITH BANKING APPS :

Discuss how banks are making it easier to use delegated payments  by integrating this feature into the mobile apps. This seamless integration can help increase adoption among users.

Delegated Payments: A NEW WAY TO CHANGE YOUR SPENDINGS

Consider how this feature might change how people handle payments .Such as reducing missed payments or cutting down on the need for manual transaction.

1. REAL-LIFE EXAMPLES:

Stories of how families or business are already benefiting from delegated payments. Making the concept more relatable and easier to understand.

2. POTENTIAL FOR FUTURE EXPANSIONS:

Speculate on how this feature might evolve. For example, could delegated payments extend to more complex financial transactions, such as investor contribution and budgeting tools.

”DELEGATED PAYMENTS” : STEP BY STEP GUIDE INTRODUCED BY RBI

Choose A UPI app : open any UPI -enabled app, like Google pay or Phone PE , on your smartphone. These apps are easy to use and widely available.

Select The Service: Find the section for bill payments, subscriptions, or recuring services within the app. Choose the service you want to set up, such as electricity bill or streaming subscriptions.

Authorize The Payments: Approve the payment setup by entering into UPI PIN. This grants the app permission to handle payments automatically.

Manage Payments: After setup, use the app to pause, cancel, or adjust payment as needed. You have to control over how and when payments are made.

Monitor Notification: The app will send reminders before processing payment. This keeps you informed and allows you to make changes if necessary.

CONCLUSION:

“Delegate Payments” on UPI simplify managing your regular bills and subscriptions by automating the payment process. You set up payments to handled automatically in just a few steps, saving time and reducing the chances of missing important deadlines. You still have control, as you can adjust, pause, or cancel these payments anytime through your UPI app. This feature helps keep your financial commitments on track with minimal effort, making managing your expenses smoother and more convenient.