Shaktikanta Das, governor of the RBI, revealed a new feature for platforms using the Unified Payments Interface (UPI) that would permit multiple debits. In his speech marking the end of the three-day Monetary Policy Committee (MPC) meeting, Mr. Das was effusive in his appreciation for the electronic payment system.
“UPI has emerged as the best payment system anywhere in the world. It has been our constant endeavor to try and deepen the reach in India. The UPI currently includes functionality to undertake recurring payments and single-block payments. It is now being enhanced to allow customers to block funds in their accounts for multiple payments of specific nature,” the Governor said.
This should make investing in securities and making payments for online purchases easier. Users will be able to block monies in their accounts using the single-block and multiple debits feature that the RBI will introduce.
Users can currently set up recurring payments using the UPI AutoPay feature, however merchants can only process a single debit to collect money. With the new function, the merchant is able to debit several times up to the allowed limit.
UPI is a payment system that enables mobile phone-based money transfers between any two bank accounts. It enables customers to make payments directly from their bank accounts to various merchants, both online and off, without having to type their net banking or wallet passwords or their credit card numbers or IFSC codes.