There are times when we forget to pay our utility bills and insurance premiums before due dates. Therefore, we end up paying surcharges for utility bills. An insurance policy expires if the premium is not paid on time.
Recently, the National Payments Corporation of India (NPCI) launched the UPI AutoPay feature, which will enable recurring payments through the Unified Payment Interface (UPI).
With this feature, consumers can set up automatic debit instructions in their UPI mobile apps for debits from their linked bank account.
“Bank customers can set up recurring UPI payments for their systematic investment plans (SIP) in mutual funds, loan EMI (equivalent monthly installments), insurance premiums, utility bills, over-the-top platform subscriptions (OTT) and more, “says Sanjeev Moghe, EVP and Head of Cards and Payments at Axis Bank.
“In this age of technology, UPI Autopay will help customers make recurring payments smartly, conveniently, and securely. Customers using this feature will not have any stress for late charges. This feature will be a further boost for UPI, which has seen an increase in usage, “says Ajay Khurana, Executive Director of the Bank of Baroda.
Axis Bank, Bank of Baroda, HDFC Bank, Paytm Payments Bank and State Bank of India (SBI), among others, have implemented this service so far.
How should I configure payments with UPI AutoPay?
A consumer can register for the UPI AutoPay command from a merchant’s website, as well as from the UPI application they use. You must provide the merchant’s UPI, frequency of payment, amount to be debited (fixed or up to a certain value), and validity period of recurring payments during registration.
You will receive a notification to authorize the AutoPay request in the UPI application. You need your UPI PIN to authorize it. After your UPI PIN is verified, you will receive a confirmation message on the registered email ID and mobile phone number of the AutoPay facility’s installation merchant.
After the successful registration of UPI AutoPay, the payment will be processed according to the instructions provided. Praveena Rai, Chief Operating Officer of NPCI says: “To provide information and convenience to the user, there will be a notification at least 24 hours before the amount is deducted from the bank account and after the amount is also deducted. The consumer also has the flexibility to cancel, pause and modify the UPI AutoPay instruction, taking into account the consumer’s obligations to the merchant. ”
You can take advantage of this feature as mandates are generated instantly and payments are automatically deducted on the authorized date. Banks do not impose charges for establishing the UPI Self-Payment facility.
What is the frequency of recurring payments that can be configured with UPI AutoPay?
The frequency of available recurring payments is daily, weekly, biweekly, monthly, bi-monthly, quarterly, semi-annually and annually or as presented by the merchant. Payment options may vary from merchant to merchant depending on the payment option on their website. For example, you can set up a monthly SIP to invest in mutual funds with an asset management company (AMC). Similarly, you can set up semi-annual or annual insurance premium payments. To use this service, AMCs and insurance companies must provide the UPI payment option.
Do I have to enter my UPI PIN to authorize each UPI AutoPay payment?
No. For recurring transactions up to Rs 2000, you will have to give an authorization once, after which you do not need to authorize the transaction with the pin. However, if the value of the transaction is greater than Rs 2000, the UPI pin is still required to complete the transaction.
What if I don’t have enough balance in my account when the recurring payment is debited?
In such situations, your recurring UPI AutoPay payment will fail and the merchant will be informed of the default. “Your bank will not impose any fines or penalties for failing to maintain a sufficient balance for the recurring payment,” says Moghe. Automatic payment is not canceled in case of non-payment. On the next billing date at the indicated frequency, UPI AutoPay will again attempt to debit your linked bank account.