How to setup UPI autopay for your recurring payments
1 min read 13 Oct 2021, 04:24 PM ISTAs per NPCI, some of the banks, merchants, and aggregators who are live with UPI AUTOPAY are Axis Bank, HDFC Bank, ICICI Bank, IDFC Bank, Paytm Payments Bank, State Bank of India, YES BANK, IIFL Securities, Helpage India, CRY, Bajaj Finserve, Netflix and Disney+ Hotstar
PremiumNEW DELHI: Customers are required to carry additional factor authentication (AFA) on all recurring payments done through their debit cards, credit cards, UPI and prepaid payments instruments (PPIs), according to the Reserve Bank of India (RBI) guidelines,
AFA is a one-time process for transactions below ₹5,000 and is same as approval using OTP at the time of registration.
With UPI AUTOPAY, customers can enable recurring e-mandate using any UPI application for recurring payments such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds, and loan payments, paying for transit/metro payments among others of up to ₹5,000. If the amount exceeds ₹5,000, customers have to execute every mandate with UPI PIN.
With the RBI’s new auto-debit rule on AFA has been made applicable since 1 October, here’s an explanation of the process of setting up an e-mandate in the UPI app to maximise the benefits of using autopay option.
First login to BHIM UPI App and click on ‘Auto Debit’ option, and then ‘Mandate’.
Any UPI-enabled application would have a ‘Mandate’ section, through which customers can create, modify, pause as well as revoke auto-debit mandate.
Next step is to manage mandate. This section allows customers to view their past mandates for their reference and records. UPI users can create e-mandate through UPI ID, QR scan, or Intent.
Users should next select payment frequency or period. As per the National Payments Corporation of India (NPCI), 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.
Next users should add name of the merchant and select auto debit date and then finally click on ‘Proceed’.
Customers have to authenticate their account through UPI PIN one-time and subsequent monthly payments would be debited automatically.
Individual users and merchants are expected to benefit from this feature, as mandates are generated instantly and payments get deducted automatically on the authorized date.
As per NPCI, some of the banks, merchants, and aggregators who are live with UPI AUTOPAY are Axis Bank, HDFC Bank, ICICI Bank, IDFC Bank, Paytm Payments Bank, State Bank of India, YES BANK, IIFL Securities, Helpage India, CRY, Bajaj Finserve, Netflix and Disney+ Hotstar.
