The Reserve Bank of India has made it flexible by further relaxing its rules to promote UPI payments. With the new change of RBI, investing in mutual fund SIP through UPI payment has become easier.
Along with this, UPI payment for online shopping, hotel booking, OTT platform subscription has been made easier than before. The Reserve Bank of India (RBI) has said that it will increase the number of users for UPI payments. The RBI governor has said on 7 December 2022 that once the UPI customer gives consent to block money in his bank account, the merchant will be allowed to debit multiple times up to the maximum amount instead of allowing one payment at present.
The new changes in UPI will make it easier for customers to keep money for investment purposes such as stock market purchases, online shopping, hotel bookings etc. According to the new rules, UPI customers can make recurring payments for mutual fund SIPs, subscriptions to OTTs such as Netflix, Disney+ Hotstar, music streaming apps Spotify and Apple Music.
This is possible through the UPI Autopay facility. UPI payment system can also be used to make payments on e-commerce platforms Amazon, Flipkart. For this, either a virtual payment address has to be entered or payment can be made by scanning the QR code available on the online shopping platform. The merchant needs the customer’s consent to block the amount in the customer’s bank account for recurring payments or one-time payment orders.
After the change in the new rules, the merchant will be able to debit the maximum amount multiple times after the permission. Explain that at present, once the consent is obtained from the customer, a merchant can do only one debit to get the payment. While after the new change, the merchant will be able to do multiple debits from the customer’s bank account. This can be done after obtaining the consent of the customer for the maximum amount sanctioned.
Example,
if you book a hotel now, then you will have to pay the booking amount first and then make the second payment after staying in the hotel. However, after the implementation of the new rules, the hotel can create an order to receive payments through UPI. The Hotel can debit Your Bank Account at any point of time up to the maximum amount permitted by You without the need to open the Payment App again and again.
