With the addition of the AutoPay feature to the UPI, cashless transactions would be made easier at a time when social distancing is the new norm.
Crux of the Matter
The National Payment Corporation of India (NPCI) recently added the AutoPay feature to the Unified Payments Interface (UPI) for recurring payments. With the new feature, user can make a one-time decision for recurring payments like EMI payments, mobile bills, electricity bills, OTT subscriptions, insurance etc.
Currently, the feature would be applicable for payments upto ₹2000, beyond which execution with UPI PIN would be required each time.
How To Use?
- The user has to create an e-mandate through UPI-enabled bank ID, QR Scan, or Intent.
- Authentication using UPI PIN required first to create the e-mandate.
- The UPI based apps would display a ‘mandate’ section. The user can set there a mandate for “one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-yearly and yearly” frequencies.
- One can also see the previous mandates, and can create, modify, approve, pause, and revoke auto debit mandate.
The ease of recurring payments is expected to increase the number of online transactions, which would prove helpful for citizens amidst the Covid-19 pandemic, where social distancing is the new norm with people trying to avoid handling of cash.
What Is UPI?
The Unified Payments Interface (UPI) was developed by the National Payments Corporation of India (NPCI). It is a system for “real-time” payment at an instant, immediately transferring funds between two accounts, through an app. The app allows access to multiple bank accounts at one portal.
The fund transfer is done through the Immediate Payment Service (IMPS), which is faster than the National Electronic Funds Transfer (NEFT). “2 Factor Authentication” is used in the system, which adds another layer of security to the transactions. The system also allows the use of the Unstructured Supplementary Service Data (USSD), where a user can dial *99# for services like fund transfer, balance enquiry, etc.
UPI Transactions And Stats
In June 2020, 1.34 billion transactions in terms of volume were made through UPI, totaling ₹2.62 lakh crore in worth. The number of transactions increased by 8.9% from May, when the total number was 1.23 billion.
- RuPay is a card scheme, conceived and launched by the National Payments Corporation of India (NPCI) in 2012. It was created to fulfil the RBI’s vision to have a domestic, open and multilateral system of payments. Rupay is a portmanteau of the words rupee and payment.
- BHIM (Bharat Interface for Money) is an Indian mobile payment App developed by the NPCI, based on the UPI. It is named after B. R. Ambedkar.
- BHIM Aadhaar pay is an Aadhaar based payments interface which allows real time payments to Merchants using Aadhaar number of Customer & authenticating them through their biometrics.