How does the latest RBI monetary policy affect the payments industry? :- www.deekpay.com

At the June monetary policy meeting, Reserve Bank of India (RBI) Governor Shaktikanta Das made some important statements on the 8th. As Das noted, the globalisation of inflation has exacerbated existing supply chain disruptions. In the face of this uncertainty, it is not surprising that central banks are adjusting their monetary policies.

Even though India is on the road to recovery, here is an overview of a glimpse of how the latest monetary policy will affect the payments industry and its consumers:

**Subscription transaction limit increased**

In order to facilitate and simplify recurring payment transactions, the limit for electronic authorisation of credit cards (credit and debit) and UPIs has been increased from INR 5,000 to INR 15,000.This provides a simpler and faster recurring payment experience for customers. Not only this, the increase in limits for such transactions will also provide a boost to the subscription based business. This will automate higher-value recurring payments and apply to more businesses such as insurance companies, ed-tech companies, etc. This allows subscription businesses to experiment and build on top of existing subscription plans to ensure maximised revenue.

**Rupay credit card will support UPI payments**

With UPI becoming a more inclusive and popular payment method in India, RBI has announced that it will allow UPI payments through Rupay credit cards. All you need to do is add your Rupay credit card to the UPI app you are using and you can make payments directly from your credit card on the UPI app. This makes the credit system smoother for consumers. On one hand, UPI is one of the most commonly used payment methods; on the other hand, credit cards have become indispensable. For the payments industry, this means that more merchants are willing to accept credit cards, which will boost card usage and drive the growth of UPI and card infrastructure in India. Additionally, it reduces costs for merchants as they do not need a POS to accept payments via RuPay credit cards. At the same time, this ensures all the benefits of a credit card without any setup costs, just the standard MDR.

This is the latest RBI policy announced by Das in June and it has significant implications for the payments industry and its consumers. Only time will tell what happens next. Stay tuned till the next policy meeting!

**Frequently Asked Questions**

- Who is the Governor of RBI, India? As of December 2018, the Governor of RBI is Shaktikanta Das.

- What's the latest news from RBI on repo rate?RBI's Monetary Policy Committee has increased the repo rate by 50 basis points to 4.9%.

- Which Indian banks are controlled by RBI? Some of the Indian banks controlled by RBI include Bank of Baroda, Bank of India, Bank of Maharashtra and Canara Bank.

- Has RBI issued any policy on debit card transactions?In April 2022, RBI announced that it would issue debit cards only to people with savings accounts or current accounts.