The Reserve Bank of India’s new auto-debit rule on Additional Factor of Authentication (AFA), has been made relevant from October 1. With the UPI Auto-Pay facility, clients can use any UPI utility for recurring funds corresponding to electrical energy payments, EMI funds, insurance coverage, cell payments, mutual funds, amongst others, upto Rs. 5000.
As per particulars shared by the National Payments Corporation of India (NPCI), this is a step-by-step information on the way to setup BHIM UPI Auto-Pay facility to make recurring funds:
- Any UPI-enabled utility will have a ‘mandate’ part, by which clients can create, modify, pause and revoke the auto-debit mandate.
- The mandate part will permit clients to view their previous mandates. UPI customers can create e-mandate by the UPI ID, QR scan, or intent.
- The sample for the auto-debit mandate is created in line with clients’ spends on recurring funds. The mandates may be set for one-time, each day, weekly, fortnightly, month-to-month, bi-monthly, quarterly, half-yearly, and yearly.
- The mandates are generated immediately and funds get deducted robotically on the approved date.
- Customers should authenticate the account by UPI PIN one-time and the next month-to-month funds will be debited robotically.
Setting up UPI Auto-Pay within the BHIM UPI App:
- Login to the BHIM UPI App
- Click on Auto Debit
- Click on the mandate
- Manage the mandate – create new or view previous mandates
- Select the fee frequency – month-to-month / weekly / yearly, and many others
- Add the identify of the service provider and choose the auto debit date
- Click on Proceed
Some of the banks, retailers, and aggregators who’re dwell with UPI Auto-Pay are Bank of Baroda, Axis Bank, HSBC Bank, HDFC Bank, IDFC Bank, ICICI Bank, IndusInd Bank, Jio Payments Bank, Paytm Payments Bank, State Bank of India, YES BANK, and few others.