RBI to Introduce 'Single Block, Multiple Debits' Feature on UPI for E-Commerce, Investments

Funds will remain in a customer's account till actual delivery of goods or services, according to the RBI

By Press Trust of India | Updated: 7 December 2022 19:13 IST

RBI to Introduce 'Single Block, Multiple Debits' Feature on UPI for E-Commerce, Investments

Photo Credit: Unsplash

NPCI runs the Unified Payments Interface (UPI) used for real-time payments

Highlights

RBI Governor believes new mechanism will build higher degree of trust
Payment mandate will be created by blocking funds
NPCI to be issued sperate instructions to implement enhancement

The RBI on Wednesday said it has decided to add a feature in the UPI platform to aid payments where delivery of goods and services happens later, like e-commerce purchases, hotel bookings or investments in securities.

Through the 'single-block-and-multiple debits' feature on the Unified Payment Interface (UPI) platform, customers will have more trust while carrying out such transactions.

“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,” RBI Governor Shaktikanta Das said after announcing the bi-monthly policy review.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

Das said a customer will create a payment mandate against a merchant by blocking funds in his/her bank account for specific purposes which can be debited, whenever needed.

Such a facility will build higher degree of trust in transactions as merchants will be assured of timely payments, while the funds remain in the customer's account till actual delivery of goods or services, the governor added.

The governor said the feature will also be helpful in purchase of government securities using the RBI's retail direct scheme.

NPCI Said to Be in Talks With RBI on 30 Percent UPI Volume Cap Deadline

He also said separate instruction will be issued to the National Payments Corporation of India (NPCI) to implement the enhancement.

Meanwhile, Das also announced an expansion in the scope of Bharat Bill Payment System (BBPS) to include all payments and collections.

Right now, BBPS does not have a facility to process non-recurring payments or collection requirements of individuals even if they are recurring in nature, Das said, adding this results in professional service fee payments, education fees, tax payments, rent collections being outside the ambit of the platform.

AIIMS Delhi to Go Fully Digital From April 2023; To Accept Smartcards, UPI

The new system will make the BBPS platform accessible to a wider set of individuals and businesses who can benefit from the transparent and uniform payments experience, faster access to funds and improved efficiency, Das said.

Separate guidelines will be issued to NPCI Bharat BillPay (NBBL) regarding the same, he said.

What are the best smartphones you can buy in India in 2022? These are the phones we think stood out the most this year Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.