Now users can pay recurring payments through UPI | Fusion - WeRIndia

Now users can pay recurring payments through UPI

Now users can pay recurring payments through UPI

To expand the scope of Unified Payments Interface (UPI) transactions, the Reserve Bank of India (RBI) announced a new monetary policy. It allows the users of UPI to block funds to be used for multiple debits.

There has been tremendous growth in the UPI payment system for the past few years. This initiative will improve it further.

Currently, UPI users need to choose the mandate option for recurring transactions. The same thing applies to single-block-and-single-debit transactions.

But, the new monetary policy allows users to block a certain amount in their accounts and can debit whenever they needed.

That means users can block a specific amount to meet a specific purpose or to pay a merchant. For this, they need to give their consent. So, if they want to make the payment for that purpose or to the merchant, it will be debited immediately. Since users have already given consent for such transactions, there is no need for additional authentication. Thus, payments can be made faster.

This auto-debit facility will help users of UPI perform transactions with ease at e-commerce platforms. In addition, they can also make payments for food delivery, stock investments etc. In this way, the facility aims to benefit both customers and merchants.

Notably, the RBI has been expanding the scope of UPI. Earlier, it allowed the users of feature phones also to perform transactions through UPI. Besides, it allows users to make perform in offline mode as well.

In addition, RuPay credit cardholders can also link their cards to UPI. Before that, customers were able to link their debit cards to UPI.

The RBI also expanded the scope of the Bharat Bill Payments System (BBPS). Now customers and businesses can use it for recurring as well as non-recurring payments through BBPS.

Earlier, the platform was useful for recurring bill payments for merchants and utilities. The new facility allows them to pay non-recurring bills like education fees, tax payments etc.

Image Credit: Richard Tanzer Fotografie / VeroPay, CC BY-SA 3.0, via Wikimedia Commons

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