Paytm has launched a new feature called 'Pocket Money', designed to allow teenagers in India to make UPI (Unified Payments Interface) payments without needing a personal bank account. This initiative, powered by the National Payments Corporation of India (NPCI), aims to provide teenagers with limited financial independence while ensuring parental control over spending. Parents can set monthly spending limits of up to ₹15,000 and monitor transactions in real-time through the Paytm app.

With individual transactions capped at ₹5,000, the feature also incorporates safety measures, including a temporary limit of ₹500 for the first 30 minutes after activation. Additionally, a device lock is required for usage, and parents can modify spending limits or revoke access at any time using their Paytm UPI PIN. To enable 'Pocket Money', users must update their Paytm app and complete a simple setup process, including selecting a primary bank account and authenticating with their UPI PIN. This feature is designed to help families foster responsible money habits from an early age.