RBI to have on-device wallets in UPI apps for small-ticket transactions

RBI proposed an "on-device" wallet in UPI apps aiming to conserve banking systems' resources without changing the transaction experience for the user.

As half the transactions on  the Unified Payments Interface (UPI) platform are of small value, the Reserve Bank of India (RBI) has sought to enable them through an “on-device” wallet in UPI applications. This will help reduce stress on the banking system and make the transaction process even simpler.

The RBI has also said it will launch UPI-based digital payment solutions for feature phone users, who are in excess of 440 million. These users have limited access to innovative payment methods and the existing ones have failed to pick up.

According to the RBI, 50 per cent transactions through UPI are below