wordpress blog stats
Connect with us

Hi, what are you looking for?

RBI allows recurring payments using UPI for transactions upto Rs 2,000

payments, digital payments

The Reserve Bank of India, on January 10, said that the Unified Payments Interface (UPI) can be used for making recurring payments. With this, UPI users will be available to bypass the additional factor authentication (AFA) while making a payment to a regular merchant, as long as the amount is not more than Rs 2,000.

An industry source told MediaNama that it remains to be seen as to who would use UPI for recurring transactions because in all likelihood, uses will be restricted to utility recharges, and making small value payments. It might not be possible to use UPI to pay electricity bills on a recurring basis, especially in the summers, simply because it might exceed the current permissible limit of Rs 2,000, the source said.

The apex bank, in August 2019, had allowed only cards and Prepaid Payments Instruments (PPI) to process recurring payments. Also, in 2018, when the National Payments Corporation of India launched UPI 2.0, support for recurring payments wasn’t a part of the upgrade, owing to RBI’s reservations. What has addressed RBI’s reservations since then is yet unknown. We have reached out to RBI for more information.

RBI also said that all norms applicable for credit/debit cards and prepaid instruments offering recurring payments would be applicable for UPI transactions as well:

  • The service provider would have to notify a user 24 hours before a transaction is supposed to take place. The customer will also have to be notified as soon as a transactions has taken place.
  • A grievance redressal mechanism will also have to be put in place by the issuer bank.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

You May Also Like

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ