The Reserve Bank of India’s new automatic debit rule on Additional Authentication Factor (AFA) went into effect on October 1. With the UPI Auto-Pay feature, customers can use any UPI app for recurring payments such as utility bills, EMI payments, insurance, mobile bills, mutual funds, among others, up to Rs 5000.
According to details shared by the National Payments Corporation of India (NPCI), here is a step-by-step guide on how to set up the BHIM UPI automatic payment feature to make recurring payments:
- Any UPI compatible application will have a “mandate” section, through which customers can create, modify, suspend and revoke the direct debit mandate.
- The mandate section will allow clients to consult their past mandates. UPI users can create an electronic mandate via UPI ID, QR scan or intent.
- The direct debit mandate template is created based on customer spending on recurring payments. Mandates can be one-off, daily, weekly, bimonthly, monthly, bimonthly, quarterly, semi-annually and annually.
- Money orders are generated instantly and payments are automatically deducted on the authorized date.
- Customers need to authenticate the account via UPI PIN code only once and subsequent monthly payments will be debited automatically.
UPI Auto-Pay configuration in the BHIM UPI application:
- Log in to the BHIM UPI app
- Click on Automatic Debit
- Click on the mandate
- Manage mandate – create new mandates or view past mandates
- Select the payment frequency – monthly / weekly / yearly, etc.
- Add the merchant name and select the automatic debit date
- Click Continue
Some of the banks, merchants and aggregators that use UPI Auto-Pay are Bank of Baroda, Axis Bank, HSBC Bank, HDFC Bank, IDFC Bank, ICICI Bank, IndusInd Bank, Jio Payments Bank, Paytm Payments Bank, State Bank of India , YES BANK, and a few others.