RBI to Introduce ‘Single Block, Multiple Debits’ Feature on UPI for E-Commerce and Investments
The RBI said on Wednesday that it has decided to add functionality to the UPI platform to facilitate payments when the delivery of goods and services takes place later, such as e-commerce purchases, hotel reservations or investments in securities.
With the “single block and multiple debits” functionality of the Unified Payment Interface (UPI) platform, customers will have more confidence when performing such transactions.
“It has been…decided to introduce a single block and multiple debit functionality in UPI, which will significantly improve the ease of making payments in the e-commerce space and to investments in securities,” said RBI Governor Shaktikanta Das after announcing the bi-weekly policy review.
Das said a customer will create a payment mandate against a merchant by blocking funds in their bank account for specific purposes that can be debited, when needed.
Such a facility will enhance the degree of confidence in transactions, as merchants will be assured of receiving timely payments, while funds will remain in the customer’s account until the actual delivery of goods or services, added the governor.
The Governor said the feature would also be useful for purchasing government securities using the RBI’s Direct Retail Scheme.
He also said that separate instructions would be issued to the National Payments Corporation of India (NPCI) to implement the improvement.
Meanwhile, Das also announced an extension of the scope of the Bharat Bill Payment System (BBPS) to include all payments and collections.
At present, BBPS does not have facilities to process non-recurring payments or collection requirements from individuals, even if they are recurring in nature, Das said, adding that this translates into fee payments. professional services, education costs, tax payments, outside rent collections. the perimeter of the platform.
The new system will make the BBPS platform accessible to a wider set of individuals and businesses who can benefit from a seamless and consistent payment experience, faster access to funds and improved efficiency, a said Das.
Separate guidelines will be issued to NPCI Bharat BillPay (NBBL) on this, he said.
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