National Payment Corporation of India (NPCI) has launched the functionality of UPI AutoPay for recurring payments. With this new facility introduced under UPI 2.0, one can now enable recurring e-mandate using any UPI application for recurring payments such as mobile bills, electricity bills, EMI payments, entertainment or OTT subscriptions, insurance, mutual funds and loan payments, paying for transit or metro payments among others.
Such mandates can be set up without UPI PIN for an amount up to Rs. 2000. If the amount exceeds Rs. 2000, one has to execute every mandate with UPI PIN.
Any UPI-enabled application would also have a ‘Mandate’ section, through which one can create, approve, modify, pause as well as revoke auto-debit mandate. The mandate section will allow one to view their past mandates for their reference and records.
UPI users can create e-mandate through UPI ID, QR scan or Internet. The pattern for auto debit mandate has been created keeping in mind customers’ spends on recurring payments. The mandates can be set for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half yearly and yearly.
The primary benefit from this feature is that the mandates are generated instantly and payments get deducted automatically on the authorized date. The users have to authenticate their account through UPI PIN for one-time and subsequent monthly payments would be debited automatically.
Some of the banks, merchants and aggregators who have already gone live with UPI AutoPay are Axis Bank, Bank of Baroda, HDFC Bank, HSBC Bank, ICICI Bank, IDFC Bank, IndusInd Bank, Paytm Payments Bank, AutoPe-Delhi Metro, AutoPe-Dish TV, CAMS Pay, Furlenco, Growfitter, Policy Bazaar, Testbook.com, The Hindu, Times Prime, Paytm, PayU, RazorPay, among others. Jio Payments Bank, State Bank of India and YES Bank will soon go live with UPI AutoPay.