RBI Governor Announces NPCI's New Role in UPI Transactions

In a significant move to enhance digital payment flexibility, Reserve Bank of India (RBI) Governor Sanjay Malhotra has announced that the National Payments Corporation of India (NPCI) will now have the authority to revise transaction limits for UPI in-person merchant transactions. This decision marks a pivotal step towards fostering innovation in India's digital payment ecosystem.

Understanding the Regulatory Sandbox

The announcement also highlighted the role of the Regulatory Sandbox (RS) in testing new financial products. The RS allows for live testing in a controlled environment, enabling regulators and innovators to assess the benefits and risks of new technologies. This approach ensures that innovations in financial services are both safe and beneficial for end-users.

Monetary Policy Adjustments

Alongside these developments, the RBI has decided to reduce the repo rate by 25 basis points, adjusting it from 6.25% to 6.0%. This decision, made after a thorough review by the Monetary Policy Committee (MPC), reflects the RBI's commitment to supporting economic growth through accommodative monetary policies.