RBI said it has decide to add a feature in the UPI platform to aid payments where delivery of goods and services happens later, like e-commerce purchases, hotel bookings or investments in securities.
Through the ‘single-block-and-multiple debits’ feature on the Unified Payment Interface (UPI) platform, customers will have more trust while carrying out such transactions.
RBI Governor Shaktikanta Das said after announcing the bi-monthly policy review :
“It has decided to introduce a single-block-and-multiple-debits functionality in UPI, which will significantly enhance the ease of making payments in e-commerce space and towards investments in securities,”.
Shaktikanta Das said a customer will create a payment mandate against a merchant by blocking funds in his/her bank account for specific purposes which can be debit, whenever needed.
This feature will build higher degree of trust in transactions as merchants will be assure of timely payments and the funds remain in the customer’s account till actual delivery of goods or services, the governor adds.
Shaktikanta Das said the feature will also be helpful in purchase of government securities using the RBI’s retail direct scheme.
He also said separate instruction will be issue to the National Payments Corporation of India (NPCI) to implement the enhancement.
Shaktikanta Das also announce an expansion in the scope of Bharat Bill Payment System (BBPS) to include all payments and collections.
As of now, BBPS does not have a facility to process non-recurring payments or collection requirements of individuals even if they are recurring in nature, Shaktikanta Das said, adding this results in professional service fee payments, education fees, tax payments, rent collections being outside the ambit of the platform.
The new system will make the BBPS platform accessible to a wider set of individuals and businesses who can benefit from the transparent and uniform payments experience, faster access to funds and improved efficiency, Shaktikanta Das said.
Separate guidelines will be issue to NPCI Bharat BillPay (NBBL) regarding the same, Shaktikanta Das said.
