Overview
NPCI has launched the functionality of AutoPay for recurring payments. With this new facility introduced customers can now enable recurring e-mandate using any UPI application for recurring payments .
The users now can set up automatic monthly payments for recurring use cases:
- Payment of Utility bills
- EMI payments
- Entertainment/OTT subscriptions
- Insurance, Mutual funds
- Payments to housing societies, membership fees etc.
UPI Autopay Mandate:
Unified Payments Interface (“UPI”) Autopay: Customers can use UPI through any authorized UPI application, including but not limited to BHIM UPI, PhonePe, Google Pay and Paytm. Authentication can be made by means of initiating an authentication request against one’s Virtual Payment Address (VPA such as vpa@okhdfcbank) by entering the UPI PIN by the payer on Payment Service Provider (PSP) app.
Auto-debits can happen up to 15K without customer entering the PIN . Users can create, approve, modify, pause, or revoke auto debit mandates with exception being lending where mandate cannot be canceled/revoked by the borrower.
All UPI autopay recurring payments require a notification to be sent, at least 24 hours prior to the execution time. Notification will be sent by the respective issuing bank of the customer and in some cases, by the PSP app itself. Only if the notification is successful, execution can be attempted.