In a landmark announcement on August 28, 2024, Reserve Bank of India (RBI) Governor Shaktikanta Das introduced two revolutionary fintech solutions at the Global Fintech Festival 2024: UPI Circle and Bharat BillPay for Business (BBPS). Both initiatives, developed by the National Payments Corporation of India (NPCI), aim to significantly enhance the efficiency, security, and inclusivity of India’s digital payment ecosystem.
Introducing UPI Circle
UPI Circle is a new feature designed to facilitate more flexible and secure transactions for Unified Payments Interface (UPI) users. This innovative tool allows users to delegate payment responsibilities to trusted secondary users, either fully or partially.
- Full Delegation: Primary users can authorize secondary users to complete UPI transactions on their behalf within predefined spend limits. The NPCI has set a cap of INR 15,000 per month and INR 5,000 per transaction for full delegation.
- Partial Delegation: Primary users can permit secondary users to initiate payment requests, which the primary users must then authorize using their UPI PIN.
A primary user can delegate tasks to up to five secondary users, though a secondary user can only accept delegation from one primary user. These new features are designed to streamline transactions while maintaining robust security measures.
Bharat BillPay for Business: A Game-Changer for B2B Payments
The expansion of Bharat BillPay for Business (BBPS) brings a comprehensive suite of services tailored for business enablement platforms. This solution aims to automate and simplify the invoice payment process, offering a centralized and interoperable platform for businesses of all sizes.
Key features include:
- Business Onboarding: Streamline the process of integrating new businesses into the platform.
- Invoice Management: Efficient handling of purchase orders, invoice creation, and automated reminders.
- Guaranteed Settlement: Assurance of timely and accurate payments.
- AR and AP Dashboards: Tools for managing accounts receivable and payable.
- Online Dispute Resolution: A system for addressing payment disputes efficiently.
EnKash and neobank OPEN are among the first to integrate with BBPS for Business, with EnKash’s Olympus platform supporting various payment methods including UPI, net banking, cards, NEFT, and IMPS.
Additional Announcements at GFF 2024
The Global Fintech Festival 2024 also featured other significant developments:
- Flipkart’s fintech app super. money launched its first product, a co-branded credit card in collaboration with Utkarsh Small Finance Bank.
- Fintech Association for Consumer Empowerment (FACE) received RBI approval to function as a self-regulatory organization (SRO) for the fintech sector.
These announcements reflect a vibrant and rapidly evolving fintech landscape in India, highlighting the ongoing innovation and collaboration driving the sector forward.
