RBI Adds More Features To UPI Platforms For Online Shopping & Easy Investments
The RBI is going to add more features on the UPI platforms such as single-block and multiple-debits functionalities. This will also make UPI easier for shopping, investments & bill payments.
The central bank has expanded the utility array of digital platforms by enabling numerous debits for potentially recurrent payments, reducing the possibility that the average saver will fail to meet scheduled payment commitments.
According to the Reserve Bank of India (RBI), UPI users can establish a payment authority against a merchant by setting aside money in a bank account for a particular use, and the money can then be deducted as needed.
The introduction of a single-block-and-multiple debit functionality into UPI, according to the central bank, has been decided.
This will significantly improve the ease of making payments in the e-commerce space and toward investments in securities.
According to the RBI, such a choice will be useful for e-commerce transactions, secondary capital market purchases of securities, purchases of government securities through the RBI’s Retail Direct programme, and hotel reservations.
According to Mandar Agashe, founder of Sarvatra Technologies, “This new functionality of single-block-and-multiple debits’ will improve the convenience of making payments in the e-commerce space.”
“The customers can pay by blocking the amount in their accounts, which means there is a pledge to pay but the exact amount will be transmitted when the actual goods are delivered.
The merchants will be guaranteed timely payments. In the upcoming months, there might be a large number of customers who favor cash on delivery and use UPI regulations for payments.”
According to Vishwas Patel, executive director of Infibeam Avenues NSE 0.85%, many cash or UPI users will switch to advance booking systems and payment mandates because doing so gives them control over their payment decisions.
The Bharat Bill Payment System (BBPS) now accepts all types of payments and collections, both recurring and non-recurring, thanks to an expansion by the RBI.
According to the RBI, this will open up the platform to a larger group of people and companies who can take advantage of the transparent and standardized payments experience, quicker access to funds, and increased efficiency.
According to Avinash Godkhindi, MD of Zaggle, “The platform has now become available to a wider range of people and business owners who can now advantage with speedier fund access and efficiency improvements.”