UPI Auto Pay: Many times we forget to pay our LIC insurance premium, utility and OTT bills etc. Then if you get late, you have to pay late fee charges or the service stops being available. Many times the policy also lapses if the premium is not paid on time.
Many times we forget to pay our LIC insurance premium, utility and OTT bills etc. Then if you get late, you have to pay late fee charges or the service stops being available. Many times the policy also lapses if the premium is not paid on time. Keeping in mind such problems of common people, in 2020, National Payments Corporation of India (NPCI) launched UPI Autopay service, which allowed recurring payments through Unified Payment Interface (UPI). Through this, customers started setting auto-debit instructions on the UPI application linked to their bank account.
Today, UPI has become a popular option for making autopay payments. The RBI bulletin released in June 2023 has seen a 143 percent year-on-year increase in successful transactions using the UPI Autopay service. Recently, at the Global Fintech Fest 2023, Razorpay launched UPI Autopay on QR with the help of NPCI.
How to set UPI Autopay?
A user can register for UPI Autopay mandate through a merchant’s website as well as through the UPI app he/she is using. You have to provide the merchant’s UPI ID, time and period of payment, amount to be debited and validity of recurring payment.
You will get a notification to authorize the autopay request on the UPI app. For this you will need UPI PIN. You will have to verify the PIN. After this you will receive a confirmation message on the registered email ID. After autopay is setup, a message will come on the mobile from the merchant. After that payment will have to be made on the mobile number as per its instructions. There is no charge on UPI Autopay service.
You can also set up auto payment from your savings account using Internet Banking. For example, if you have an account with State Bank of India (SBI), first you have to log in to Internet Banking, click on Bill Payment and click on Manage Biller. Add, modify and view biller options will appear on this page. Here you can choose. Using UPI AutoPay you can make recurring payments through apps like Paytm, GooglePay, PhonePe etc.
You can decide the payment period
You can also decide the payment time for such recurring payments. Like daily, weekly, monthly, bimonthly, quarterly or annually etc. Like you can choose monthly option for payment of OTT platform.
If there is no money in the account
If there is no money in your bank account for recurring payment then the payment will fail. Both the merchant and the user will get this information. Later payment for the next month will not be cancelled. That means, once a payment fails, you won’t have to set up auto debit again.
