RBI Allows Recurring Payments through UPI Transactions

Shopping Friend

RBI Allows Recurring Payments through UPI Transactions:

The regulator has allowed transactions worth up to Rs 2,000 to be carried out under this mode.

The payment feature will be available for customers to opt in through a one-time registration process, where an additional factor authentication would be used. Using this, the customer can allow e-mandates for transactions where they would like to allow merchants to receive payments at regular intervals. The service provider would have to provide a pre-transaction notification to the customer at least 24 hours before the scheduled transaction. Similarly, the service provider will also provide a notification to the customer immediately after the transaction. An easy opt-out facility and a grievance redressal mechanism with clearly defined timelines will also be provided to the customer by the service provider, it had said.

The move is likely to make signing up for financial services, such as systematic investment plans and insurance, easier for customers. It will also help in making UPI a means for payment for utility bills up to a certain limit.

The regulator’s guidelines on reducing customer liability through fraudulent online transactions would be applicable on these customers as well. It shall be the responsibility of acquirers to ensure compliance by merchants on-boarded by them, RBI had said.

The RBI communication said that all norms applicable for credit/debit cards and prepaid instruments offering recurring payments would be applicable for UPI transactions as well.