Have you ever missed a bill due date and had to pay a heavy penalty? Resolving payments can be pressurising, especially when you are looking at multiple recurring payments. To deliver an easy way for customers to make recurring payments online, the National Payments Corporation of India (NPCI) has recently rolled out a new feature UPI Autopay on the Unified Payments Interface (UPI) portal.
NPCI has decided to furnish this feature as a part of UPI 2.0 update. The objective of this launch is not just to make the process of recurring payments easy for the consumers but also for businesses.
What is UPI AutoPay?
As the name suggests, UPI Autopay is an automatic bill payment service which schedules a predetermined date to pay a recurring bill. UPI Autopay will allow the users to enable recurring e-mandate for multiple financial purposes such as payments of mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance payments, mutual fund SIP payments, and more.
Objectives of launching UPI Autopay
- Making recurring payments accessible and easy
- Better and newer features for the bigger plan of increasing the proportion of digital payments and reducing the amount of cash that we use in our economy
- Introducing a convenient and safe option for UPI users for their recurring payments
Example of Automatic Bill Payment
Enabling UPI Autopay saves the customers from the hassle of having to remember to make a payment every month.
For example, you have Rs. 1800 EMI payment due on the 10th of every month for the next 4 years. Instead of logging into your account and following the entire process of payment every month, you can enable UPI Autopay which will automatically debit Rs. 1800 every month from your account for the set EMI payment.
What are the benefits of UPI AutoPay?
UPI Autopay will be benefiting the users by providing them with a convenient and safe way of making recurring payments. Here are some of the benefits of UPI autopay option-
- Payments can be automated very easily from the existing UPI account on any UPI enabled app
- Automated bill payments are very helpful in avoiding late payments
- Automatic and timely payments also help you improve your credit score
- Once automation of payments is done, you do not need to keep doing the task every month
- Customisable and convenient platform designed as per customer requirement
For Financial Services:
- After registering for UPI AutoPay, you will be able to make EMI payments for loans, insurance, mutual funds, etc. without missing out the due dates
- Timely payments will eliminate late fees/penalties
- This autopay feature has curated a customised payment option including monthly, quarterly options, for all the users
- One can also set the amount from Rs. 1 to Rs. 2000 for recurring payments
- A secure and convenient way of initiating recurring payments
- No documentation or paperwork required
For Educational Services:
- With UPI AutoPay, users can pay school/college tuition fees easily without the need of setting any reminders
- The feature has different educational packages which can be explored and selected as per the requirement of the user
For Entertainment/OTT Subscriptions:
- Using the Autopay option of UPI, users can enable recurring payments for entertainment or OTT subscriptions
- Different plans are available for customisation as per the user’s requirements
- Mandates can be created for activating single channels/bulk plans
- Allows non-stop entertainment and no missed payment cycles
For E-commerce and Online Delivery Services:
- You can select buy now pay later option available under UPI Autopay feature
- Special features like Modify/Revoke/Pause are also available for changing the order placed as and when required
- Convenient mode of making automatic payments
- Improved online shopping experience eliminating the need of going out in the crowd
What are the disadvantages of UPI AutoPay?
- If you do not maintain a certain balance in your account, your automated payments could bounce
- You may incur a returned payment fee or late fee
- If not paid enough attention, you could miss catching mistakes or fraud
How to use the UPI AutoPay option?
Every UPI-enabled application will furnish a ‘Mandate’ option through which a customer can create, approve, modify, pause or revoke auto-debit mandate. Follow this step-by-step guide to use the UPI Autopay feature-
- Authenticate your account via UPI PIN for one-time and following monthly payments will be debited from your account automatically
- Create an e-mandate via UPI-enabled bank ID or QR scan for transactions up to Rs. 2000
- For transactions above Rs. 2000, a UPI PIN authentication will be required for every mandate
- Mandates can be set for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-yearly, and yearly
Read More: UPI Registration
Automated payment methods can be very beneficial not just for a consumer but also for businesses. One can register, e-mandate and customise automatic payments for recurring bills, salaries, etc. UPI has introduced its UPI Autopay feature to allow its users to mandate recurring payments. To avail this facility, the users must register under UPI Autopay which will allow the application to debit the set amount at the set date automatically from the user’s bank account.
Frequently Asked Questions
Q. What is Autopay?
Autopay or Automatic Payment is a feature which allows you to mandate a recurring payment which will be automatically debited from a savings or current account or charged to a credit card. For the Autopay feature, the customer approves a vendor to deduct money from his/her bank account automatically at a predetermined date.
Q. What is UPI Autopay?
UPI AutoPay is a new feature launched by the NPCI using which, the customers can e-mandate and schedule a predetermined date to pay a recurring bill including payments of mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance payments, mutual fund SIP payments, and more.
Q. Who can use UPI Autopay?
Any individual register for UPI can use UPI AutoPay option for their recurring payments such as mobile bills, electricity bills, loan payments, EMIs, subscriptions, cable networks or other OTT subscriptions, etc.
Q. Is UPI Pay Customisable?
Yes, you can customise UPI autopay option according to your requirement. One can also set the amount from Rs. 1 to Rs.2000 for recurring payments. Mandates can be set for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-yearly, and yearly.
Q. Are there any extra charges for UPI autopay service?
No, there are no extra charges levied on UPI autopay service.
Q. Which banks are providing UPI Autopay service?
All the banks with UPI enabled platforms will be providing Autopay service. Some banks, merchants and aggregators like Axis Bank, Bank of Baroda, HDFC Bank, HSBC Bank, ICICI Bank, AutoPe-Delhi Metro, AutoPe-Dish TV, CAMS Pay, Furlenco, Growfitter, Policy Bazaar, Testbook.com, The Hindu, Times Prime, PayU, RazorPay, etc. have already gone live with this feature.