The Reserve Bank of India's new auto-debit rule on Additional Factor of Authentication (AFA), has been made applicable from October 1. With the UPI Auto-Pay facility, customers can use any UPI application for recurring payments such as electricity bills, EMI payments, insurance, mobile bills, mutual funds, among others, upto Rs. 5000.
As per details shared by the National Payments Corporation of India (NPCI), here's a step-by-step guide on how to setup BHIM UPI Auto-Pay facility to make recurring payments:
- Any UPI-enabled application will have a ‘mandate' section, through which customers can create, modify, pause and revoke the auto-debit mandate.
- The mandate section will allow customers to view their past mandates. UPI users can create e-mandate through the UPI ID, QR scan, or intent.
- The pattern for the auto-debit mandate is created according to customers' spends on recurring payments. The mandates can be set for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-yearly, and yearly.
- The mandates are generated instantly and payments get deducted automatically on the authorized date.
- Customers have to authenticate the account through UPI PIN one-time and the subsequent monthly payments will be debited automatically.
Setting up UPI Auto-Pay in 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 past mandates
- Select the payment frequency - monthly / weekly / annually, etc
- Add the name of the merchant and select the auto debit date
- Click on Proceed
Some of the banks, merchants, and aggregators who are live 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.