Shaktikanta Das, governor of the Reserve Bank of India, announced an additional function for Unified Payments Interface (UPI) platforms that would allow for multiple debits. In his address at the conclusion of the three-day Monetary Policy Committee (MPC) meeting, Mr. Das was effusive in his praise for the digital payment system.
“UPI has emerged as the best payment system on the planet.”
UPI Payment System
It has always been our goal to expand our reach in India. The UPI currently includes the ability to make recurring payments as well as single-block payments. “It is now being improved to allow customers to block funds in their accounts for multiple payments of a specific nature,” said the Governor.
This is expected to make it easier to pay for online purchases and securities investments. The RBI will implement single-block and multiple debits functionality, allowing users to restrict funds in their accounts.
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The UPI AutoPay feature currently allows users to make recurring payments, but the merchant can only make a single debit to receive payment. The merchant can now make multiple debits up to a certain amount using the new feature.
The feature, according to the governor, will also be useful in purchasing government securities through the RBI’s retail direct scheme. He also stated that the National Payments Corporation of India (NPCI) will be given separate instructions to implement the enhancement.
Meanwhile, Mr. Das announced that the Bharat Bill Payment System (BBPS) will be expanded to include all payments and collections.
Mr. Das stated that BBPS currently does not have a facility to process non-recurring payments or collection requirements of individuals, even if they are recurring in nature, which results in professional service fee payments, education fees, tax payments, and rent collections falling outside the platform’s scope.
According to Mr. Das, the new system will make the BBPS platform available to a broader range of individuals and businesses who will benefit from a more transparent and uniform payments experience, faster access to funds, and improved efficiency.
He stated that separate guidelines will be issued to NPCI Bharat BillPay Ltd (NBBL) in this regard.
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