In a bid to offer Auto-Debit option on recurring payments, National Payments Corporation of India has introduced UPI AutoPay feature.
The feature will enable customers to instruct an e-mandate for periodical payments of up to Rs. 2,000 on the UPI platform.
For recurring payments higher than Rs. 2,000, customers will have to direct an every mandate with the UPI PIN. Customers can use this UPI AutoPay feature for recurring expenses such as mobile bills, mutual funds and loan payments, paying for transit/metro payments, EMI payments, insurance, electricity bills, entertainment/ OTT subscriptions, and many other online transactions.
Besides, the UPI AutoPay feature will be auto debiting accounts for regular payments that have been pre-selected by the customers. In addition to this, eligible UPI-enabled apps will now have a ‘Mandate’ section, via which customers will have the authority to create, approve, modify, pause as well as revoke auto debit mandate. NPCI has communicated in its official statement that the mandates can be set for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half yearly and yearly as well.
Furthermore, users will have to update an authorised date for auto debit in the ‘Mandate’ section and the money will be then deducted automatically. NPCI stated that UPI users can create e-mandate via UPI ID, QR scan or Intent.