The Reserve Bank of India’s new auto-debit rule on Additional Factor of Authentication (AFA) has come into effect from October 1. With the UPI auto-pay facility, customers can use any UPI application for recurring payments like electricity bills, EMIs. Pay, Insurance, Mobile Bills, Mutual Funds, among others, up to Rs. 5000.
Here is a step-by-step guide on how to set up BHIM UPI auto-pay facility to make recurring payments, as per the details shared by the National Payments Corporation of India (NPCI):
- Any UPI-enabled application will have a ‘Mandate’ section through which customers can create, modify, pause and cancel auto-debit mandates.
- Mandate section will allow customers to view their past mandates. UPI users can create e-mandate through UPI ID, QR scan or intent.
- The pattern of the auto-debit mandate is tailored to the customers’ spending on recurring payments. Mandate can be set for one time, daily, weekly, fortnightly, monthly, bimonthly, quarterly, half yearly and yearly.
- Mandates are generated instantly and payments are deducted automatically on the authorized date.
- Customers need to authenticate the account through UPI PIN once and the subsequent monthly payments will be automatically debited.
To set up UPI auto-pay in BHIM UPI app:
- Login to BHIM UPI App
- Click on Auto Debit
- Click on Mandate
- Manage mandates – create new ones or view past mandates
- Select payment frequency – Monthly / Weekly / Yearly, etc.
- Add merchant name and select auto debit date
- Click on proceed
Bank of Baroda, Axis Bank, HSBC Bank, HDFC Bank, IDFC Bank, ICICI Bank, IndusInd Bank, Jio Payments Bank, Paytm Payments Bank, State Bank, UPI are some of the banks, merchants and aggregators living with UPI auto-pay. of India, Yes Bank, and a few others.