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RBI Adds More Features To UPI, Allows Single Block & Multiple Debits For Customers: Know About It
Writer: Shiva Chaudhary
A post-graduate in Journalism and Mass Communication with relevant skills, specialising in content editing & writing. I believe in the precise dissemination of information based on facts to the public.
India, 8 Dec 2022 7:57 AM GMT
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She writes about gender issues, human interest, and environment.
Creatives : Shiva Chaudhary
A post-graduate in Journalism and Mass Communication with relevant skills, specialising in content editing & writing. I believe in the precise dissemination of information based on facts to the public.
Through the addition of the 'single-block-and-multiple debits' feature on the UPI platform, customers will have more security while carrying out such transactions.
The Reserve Bank of India on Wednesday announced the introduction of a new feature in the Unified Payments Interface (UPI) platforms to help with payments where the delivery of goods and services happens later, such as e-commerce transactions, hotel reservations, or stock investments. Through the addition of the 'single-block-and-multiple debits' feature on the UPI platform, customers will have more security while carrying out such transactions.
While announcing the bi-monthly policy review, Shaktikanta Das, governor of the country's central bank, stated, "It has…been decided to introduce a single-block-and-multiple-debits functionality in UPI, which will significantly enhance the ease of making payments in e-commerce space and towards investments in securities."
About 'Single-Block-And-Multiple Debits' Feature
The RBI governor stated that a customer will establish a payment mandate against a merchant/retailer by blocking funds in their bank account for certain purposes, which can be debited whenever required. As per Das, such a facility will increase the level of trust in transactions as merchants/retailers will be ensured prompt payments while the funds remain in the customer's bank accounts until the delivery of goods and services.
He said that the 'single-block-and-multiple debits' feature will also benefit purchasing government securities using the Reserve Bank of India's retail direct scheme. Moreover, a separate set of instructions will be released to the National Payments Corporation of India (NPCI) to enforce the enhancement.
Bharat Bill Payment System (BBPS)
Meanwhile, the RBI governor also announced a proliferation in the Bharat Bill Payment System (BBPS) scope to incorporate all payments and collections, reported Business Standard. Currently, BBPS does not have a facility for processing non-recurring payments or collection requirements of people, even if they are recurring in nature. Das said this results in professional service fee payments, tax payments, education fees, and rent collections being beyond the ambit of the payment system.
The new system will open up the BBPS platform to a larger range of people and businesses who can take benefit of the platform's faster access to funds, enhanced efficiency, and transparent and consistent payment experience, said Das. Further, separate instructions will be issued to NPCI Bharat BillPay (NBBL) concerning the same.
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