Reserve Bank of India ( RBI ) Governor Sanjay Malhotra announced that the National Payments Corporation of India (NPCI) will have the freedom to revise the transaction limit for UPI in-person merchant transactions.
"NPCI to decide, in consultation with the banks and other stakeholders, the transaction limits in UPI for person to merchant transactions; and making the Regulatory Sandbox theme-neutral and ‘on-tap’. Necessary directions for the implementation of these two measures shall be issued separately." Malhotra stated.
According to RBI, A regulatory sandbox (RS) refers to the controlled, live testing of new products or services within a test regulatory environment, where regulators may offer certain relaxations of rules for the specific purpose of testing. The RS enables regulators, innovators, financial service providers (who may deploy the technology), and customers (as end users) to conduct field trials that gather evidence on the potential benefits and risks of new financial innovations.
Throughout this process, the risks are closely monitored and contained. It provides a structured platform for regulators to engage with the ecosystem, helping to develop regulations that foster innovation and enable the delivery of relevant, low-cost financial products.
The announcement came as part of the RBI's decision to reduce the repo rate by 25 basis points, lowering it from 6.25% to 6.0%. This decision was made following a three-day meeting of the six-member Monetary Policy Committee (MPC) that started on April 7.
Additionally, the MPC shifted its policy stance from neutral to accommodative. "Our stance provides policy rate guidance without any direct guidance on liquidity management," Governor Malhotra explained, outlining the RBI's approach to current economic condition
"NPCI to decide, in consultation with the banks and other stakeholders, the transaction limits in UPI for person to merchant transactions; and making the Regulatory Sandbox theme-neutral and ‘on-tap’. Necessary directions for the implementation of these two measures shall be issued separately." Malhotra stated.
According to RBI, A regulatory sandbox (RS) refers to the controlled, live testing of new products or services within a test regulatory environment, where regulators may offer certain relaxations of rules for the specific purpose of testing. The RS enables regulators, innovators, financial service providers (who may deploy the technology), and customers (as end users) to conduct field trials that gather evidence on the potential benefits and risks of new financial innovations.
Throughout this process, the risks are closely monitored and contained. It provides a structured platform for regulators to engage with the ecosystem, helping to develop regulations that foster innovation and enable the delivery of relevant, low-cost financial products.
The announcement came as part of the RBI's decision to reduce the repo rate by 25 basis points, lowering it from 6.25% to 6.0%. This decision was made following a three-day meeting of the six-member Monetary Policy Committee (MPC) that started on April 7.
Additionally, the MPC shifted its policy stance from neutral to accommodative. "Our stance provides policy rate guidance without any direct guidance on liquidity management," Governor Malhotra explained, outlining the RBI's approach to current economic condition
You may also like
Gardeners urged to plant plastic forks in soil for crucial reason
Opposition Slams Maharashtra Govt Over Move To Make Hindi Mandatory In Schools
Body of fisherman who died under mysterious circumstances in Pakistani jail likely to arrive in UP's Jaunpur today
Donald Trump blasted in blistering court order about wrongly deported Kilmar Ábrego García
ANDY DUNN: Forget it only being the Europa League - this was one of Old Trafford's greatest-ever nights
