This Is How You Can Use BHIM UPI App For Auto-Payments, Auto-Debits
On October 1, 2021, the Reserve Bank of India (RBI) implemented a new auto-debit rule requiring an additional element of verification for recurring payments made with debit and credit cards. The auto-pay facility where users can easily set up a mandate for recurring payments.
“With UPI AUTOPAY, customers can enable recurring e-mandate using any UPI application for recurring payments such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds, and loan payments, paying for transit/metro payments among others of up to Rs 5000. If the amount exceeds Rs 5,000, customers have to execute every mandate with UPI PIN,”
The National Payments Corporation of India (NPCI) explained via a press release issued on October 13, 2021.
As per details shared by the National Payments Corporation of India (NPCI), here’s a step-by-step guide on how to set up BHIM UPI Auto-Pay facility to make recurring payments:
Steps For Customers
- Any UPI-enabled application would have a ‘Mandate’ section, through which customers can create, modify, pause as well as revoke auto-debit mandate.
- The mandate section will allow customers to view their past mandates for their reference and records. UPI users can create e-mandate through UPI ID, QR scan, or Intent.
- The pattern for auto-debit mandate has been created keeping in mind customers’ spends on recurring payments. The mandates can be set for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-yearly, and yearly.
- Both, individual users and merchants can benefit from this feature tremendously, as mandates are generated instantly and payments get deducted automatically on the authorized date.
- The customers have to authenticate their account through UPI PIN one-time and subsequent monthly payments would be debited automatically.
UPI AUTOPAY On The BHIM UPI App
- Login to BHIM UPI App
- Click on Auto Debit
- Click on Mandate
- Manage mandate (create new or view past mandates)
- Select payment frequency / period (monthly / weekly / annually, etc)
- Add name of the merchant and select auto-debit date
- Click on Proceed
These are some of the banks, merchants, and aggregators like Axis Bank, Bank of Baroda, HDFC Bank, HSBC Bank, ICICI Bank, IDFC Bank, IndusInd Bank, Paytm Payments Bank, Jio Payments Bank, State Bank of India that have gone live with UPI AUTOPAY.