UPI: Children can also make UPI payments, get a digital wallet without a bank account..

UPI Payments for Minors: It's the digital age. Who carries a lot of cash in their pockets or purses anymore? Until a few years ago, plastic money—debit and credit cards—was the only means of payment, but now UPI payments have become the most widely used method. All that's required is a bank account linked to UPI. While adults have their own bank accounts, what about children? They should also have this facility! Until now, this aspect hadn't been considered, but now this important initiative has been taken for children. Children will now be able to make UPI payments, even if they don't have a bank account. We'll share the full story in detail.

Indeed, in this digital age, preparations are underway to integrate children into digital transactions. The Reserve Bank of India (RBI) recently granted in-principle approval to Junio Payments Pvt Ltd to issue Prepaid Payment Instruments (PPI). This means that a dedicated digital UPI wallet will soon be launched for children and teenagers, making cashless payments easier and safer for them.

This is how you can make UPI payments without a bank account.

The RBI's approval for Junio to issue Prepaid Payment Instruments (PPI) means it will be a special wallet (like Paytm or PhonePe wallets) that parents can load money into. It won't be directly linked to a bank account, so children won't need a bank account. This wallet will operate under the NPCI (National Payments Corporation of India)'s UPI Circle initiative.

This initiative is specifically designed for those who are not connected to the mainstream banking system or don't have fully KYC-compliant accounts. Children will only be able to spend up to the amount their parents have loaded into the wallet or set a spending limit, reducing the risk of major fraud or excessive spending. This feature will be a great utility for students and young people.

No bank account required: With this new wallet, children will no longer need a bank account to make UPI payments.

Payment method: This Junio wallet will be integrated with NPCI's UPI Circle initiative. Children will be able to make payments easily by scanning a UPI QR code.
Parental control: Parents will be able to link their UPI account to this wallet. This will allow them to send pocket money to their children digitally and set spending limits. Every transaction can be monitored in real time.
Helps in promoting financial literacy
This initiative is not limited to payments; it is also a great way to improve children's financial literacy. Parents can teach children to spend wisely by setting spending limits. The app includes features like task rewards and savings goals, which will help children save and understand the value of money.

The registration process may be like this:
The registration process for the Junio UPI wallet is going to be very straightforward and parent-centric. Since the full launch is scheduled to take place after RBI approval, not much information has been revealed, but the general registration process is expected to be something like this. Parents are primarily responsible for joining the Junio wallet for children. According to RBI guidelines, parents must complete the minimum KYC (Know Your Customer) process using their ID and address proof to set up a PPI wallet.

Download the Junio app: First, parents will need to download the Junio app (available on the Google Play Store and Apple App Store) to their smartphone.
Parent registration and KYC: Parents will need to create an account on the app using their mobile number. This process is completed digitally through the app.
Adding a child's account: Select the "Add Child" option in the app. Enter the child's name, age, and other necessary details. The process of issuing a unique Junio UPI wallet/card for the child will then begin.
Wallet/Card Activation and Funding: Junio will instantly issue a virtual card to the parent, and if requested, a physical RuPay card will be sent to their address. Parents will securely load money into the Junio wallet using their bank account or existing UPI app. This is the amount the child can spend.
UPI Linking and Control: Once the money is in the wallet, parents can set a daily or monthly spending limit for the child through the app. The child can start making payments by scanning the UPI QR code through the app on their phone or using the provided RuPay card.

This initiative has many benefits.

The primary objective of this UPI initiative for children is to promote financial inclusion and financial literacy among children. This will have many benefits.

Sense of responsibility: When children make digital payments themselves and track their spending on the app, they develop a sense of responsibility for their money.

Tasks and rewards: The app includes features where children can earn pocket money as rewards for completing small household tasks. This helps them understand the connection between earning and spending.

Savings goals: They can set small savings goals (such as buying a toy or a bicycle), and the app helps them save towards them.

Useful future features
Junio plans to add new features in the future that will make it even more useful. With NCMC support, this RuPay card will also work on metro, bus, and other transit services, making school commuting completely cashless for children. In terms of brand vouchers and rewards, children can earn vouchers and incentives from various brands by spending and saving on the app. This UPI wallet from Junio connects children to the digital world in a controlled and secure environment, empowering them to become responsible consumers for the future.

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