NPCI LAUNCHED “UPI AUTOPAY” FEATURE TO MAKE RECURRING PAYMENTS
NPCI’s new AutoPay feature will help the public to set up monthly recurring payments by using the UPI apps.
On Wednesday 22nd July 2020, National Payments Corporation of India (NPCI) in a virtual event of Global Fintech Fest has launched AutoPay features under Unified Payments Interface (UPI) infrastructure to make monthly recurring payments. This is also known as a one-stop fintech payment solution.
In order to ease the burden of the general public, NPCI’s new AutoPay feature will help the public to set up monthly recurring payments by using the UPI apps. The customers are required to set up e-mandate by using UPI ID or QR Scan for transactions up to Rs 2000/- and thereafter the monthly payments will be automatically debited from the customer’s account.
If the transaction amount exceeds Rs. 2000/-, the customers will be required to execute every mandate by using UPI PIN.
This new feature of NPCI can be used for multiple financial purposes like EMI payments, OTT subscriptions, mutual funds, loan payments, mobile payments, insurance payments, booking train tickets, and bus pass, etc.
There is a mandate section in this UPI-AutoPay feature via which the customers will be able to create, modify, pause, and revoke this auto-debit mandate. They can also check their past transactions and records by using this mandate section.
The feature will also be beneficial for small businesses as by getting into a customizable debit agreement with their clients or customers by using a one-time consent, they can easily collect their monthly payment.
CEO of NPCI, Mr. Dilip Asbe, said at the event that “We believe this facility will not only benefit customers but also merchants with an all-new recurring payments experience."
Banks like Axis Bank, HDFC Bank, and ICICI Bank have already enabled this AutoPay feature for their customers on a temporary basis since the start of this year. The other banks who are also expected to enable this feature are State Bank of India, Yes Bank, and Jio Payments Bank.
Apart from the banks, Paytm, Razorpay, Policybazaar, Furlenco, Groefitter, Testbook.com, etc are also expected to make this feature enable on their respective platforms.
This NPCI announcement came at this pandemic situation when the people across the nation are using the digital payment option for making any payment related to household items, business products, small ticket purchases, and various bill payments, etc.
As per the NPCI data, in the month of June 2020, 1.34 billion UPI transactions have been registered in terms of volume and this is said to be an all-time high UPI transaction.
Edited by Minu Mishra
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