Tag: recurring payments

UPI AutoPay sees robust consumer acceptance

Banking & Finance

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The UPI AutoPay facility has seen widescale adoption by consumers as the norms for standing instructions for recurring payments of the Reserve Bank of India kicked in from October 1.

Data with the National Payments Corporation of India revealed that there were over 40.3 lakh mandate registrations on AutoPay in October with 39 remitter banks on the platform. A total of 1.33 crore mandates were executed on AutoPay last month.

Also read: UPI hits new record with ₹7.71-lakh crore worth of transactions in October

State Bank of India, HDFC Bank and Bank of Baroda are the top three banks in terms of registration of mandates in October with 13.8 lakh, 4.04 lakh and 3.56 lakh mandates registered respectively with them.

Mandate registration refers to the transaction when the consumer creates a recurring mandate for recurring payments. Execution refers to the transaction when the recurring debit is done on the remitting account.

Sharp uptick

In September too, UPI AutoPay saw a sharp uptick in customer adoption with a 31.43 lakh mandates registered with 35 banks. Over 70.9 lakh mandates were executed on AutoPay in September.

The transactions in October and September were a sharp jump from August when just 17.7 lakh mandates were registered and a total of 33.5 lakh mandates were executed.

The UPI AutoPay services was launched last year for recurring payments. Customers can enable recurring e-mandates on it for payments such as utility bills, entertainment subscriptions, EMI payments, insurance and mutual funds.

A number of merchants including PhonePe, Netflix, Paytm, Gaana, Disney Hotstar, Policybazaar are live on the platform.

Experts and banks had expected it to gain popularity amongst consumers and a surge in card and UPI-based mandates as many payment providers were still in the process of meeting the RBI’s recurring payment norms.

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How to use BHIM UPI app’s auto-pay facility to make recurring payments, BFSI News, ET BFSI

Personal Finance

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The Reserve Bank of India’s (RBI) new auto-debit rule regarding additional factor of authentication for recurring payments made via debit and credit cards came into effect on October 1, 2021. The new auto-debit rule made recurring payments like subscription of OTT platforms, music apps, utility bill payments etc. difficult without additional factor confirmation via SMS, email etc..

Thus, many UPI players like BHIM, PhonePe, Amazon etc. have launched the auto-pay facility where users can easily set up mandate for recurring payments. Here is a look at how BHIM UPI users can use the auto-pay facility set up an e-mandate to make recurring payments.

“With UPI AUTOPAY, customers can enable recurring e-mandate using any UPI application for recurring payments such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds, and loan payments, paying for transit/metro payments among others of up to Rs 5000. If the amount exceeds Rs 5,000, customers have to execute every mandate with UPI PIN,” the National Payments Corporation of India (NPCI) explained via a press release issued on October 13, 2021.

Here are the steps to follow to set up the e-mandate according to the press release.

Steps for customers

  • Any UPI-enabled application would have a ‘Mandate’ section, through which customers can create, modify, pause as well as revoke auto-debit mandate.
  • The mandate section will allow customers to view their past mandates for their reference and records. UPI users can create e-mandate through UPI ID, QR scan, or Intent.
  • The pattern for auto-debit mandate has been created keeping in mind customers’ spends on recurring payments. The mandates can be set for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-yearly, and yearly.
  • Both, individual users and merchants can benefit from this feature tremendously, as mandates are generated instantly and payments get deducted automatically on the authorized date.
  • The customers have to authenticate their account through UPI PIN one-time and subsequent monthly payments would be debited automatically.

As per the NPCI press release, here how to set up UPI AUTOPAY on the BHIM UPI App

  • Login to BHIM UPI App
  • Click on Auto Debit
  • Click on Mandate
  • Manage mandate (create new or view past mandates)
  • Select payment frequency / period (monthly / weekly / annually, etc)
  • Add name of the merchant and select auto debit date
  • Click on Proceed

According to the press release, these are some of the banks, merchants, and aggregators who are live with UPI AUTOPAY: Axis Bank, Bank of Baroda, HDFC Bank, HSBC Bank, ICICI Bank, IDFC Bank, IndusInd Bank, Paytm Payments Bank, Jio Payments Bank, State Bank of India, YES BANK, Bennett Coleman and Co Ltd, Paytm LIC India, Paytm utility bill payment, Paytm recharge/bill payment, Deccan Herald e-paper, IIFL securities, Helpage India, CRY, Bajaj Finserve, Netflix, Disney+ Hotstar, Gaana, Jio Saavn, BSE, JAR, JIO mobility prepaid, Policybazaar insurance brokers, ICICI Prudential, Satin Creditcare, BHIM, Paytm, PhonePe, Amazon Pay, IndusInd Bank App, Angel Broking, and 5paisa.com etc.Google Pay, SonyLIV, Amazon Prime, Voot, Hungama, Zee5, BYJU’s, Acko General, Tata Power, SBI AMC, ET Prime, Upstox etc will soon go live with UPI AUTOPAY.



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Recurring card payments to be hit from next month, BFSI News, ET BFSI

Banking & Finance

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MUMBAI: Some cardholders might see standing instructions for payment on their credit card fail from next month. These could be for subscriptions with online content platforms, edtech companies or standing instructions for online advertisement payments. Some of these merchants are yet to comply with RBI’s new requirement of additional factor authentication (OTP) for recurring payments through cards though the deadline is less than a week away.

According to sources, around 75% of the banks have put in place the technology to meet RBI’s directive. However, there are some banks and merchants who are still in wait-and-watch mode. Banks are writing to customers, warning that some transactions may fail: “Effective October 1, 2021, the bank will not approve any standing instruction (e-mandate on cards for recurring transactions) given at merchant website/app on HDFC Bank credit/debit card, unless it is as per RBI-compliant process.” The bank has recommended that customers use its bill-pay option for utilities or pay on the biller’s website using OTP.

According to Razorpay, which processes close to a third of all recurring payment transactions, a dozen banks have already put in place the new setup where even for repeat payments the bank will alert the customer a day in advance and also provide them with a link to discontinue the mandate. “In the short term, there may be some disruption but, in the long term, this move by the RBI can take growth in recurring payment mandates off the charts,” said Razorpay chief technology officer and co-founder Shashank Kumar.

Kumar says the RBI directive addresses two key issues. Earlier, discontinuing a standing instruction to a merchant could be extremely cumbersome with some asking for a letter to be sent by post asking to discontinue the subscription. Second, debit cards were a grey area and recurring payments were done largely in credit cards. Incidentally, even after October 1, international mandates will continue as neither banks nor the RBI has jurisdiction over international billers.

“There are 900 million debit cards in India and their inclusion could increase the market multifold,” said Kumar. According to Kumar, by empowering customers to stop the payments at any time, the RBI has increased the confidence level. This could also make online education or entertainment more affordable as the availability of this facility will encourage providers to have a monthly debit model rather than recover annual fees.

Besides requiring banks to alert customers, the RBI has capped automatic debits at Rs 5,000 per month. This would mean that billers, like insurance companies, with large instalments, would need to increase the frequency to enable auto-debit. In the case of utilities, many online payers use their bank’s bill payment platform for standing instructions and will have no impact.



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Recurring card payments to be hit from next month, BFSI News, ET BFSI

Personal Finance

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Read More/Less


Some cardholders might see standing instructions for payment on their credit card fail from next month. These could be for subscriptions with online content platforms, edtech companies or standing instructions for online advertisement payments. Some of these merchants are yet to comply with RBI’s new requirement of additional factor authentication (OTP) for recurring payments through cards though the deadline is less than a week away.

According to sources, around 75% of the banks have put in place the technology to meet RBI’s directive. However, there are some banks and merchants who are still in wait-and-watch mode. Banks are writing to customers, warning that some transactions may fail: “Effective October 1, 2021, the bank will not approve any standing instruction (e-mandate on cards for recurring transactions) given at merchant website/app on HDFC Bank credit/debit card, unless it is as per RBI-compliant process.” The bank has recommended that customers use its bill-pay option for utilities or pay on the biller’s website using OTP.

According to Razorpay, which processes close to a third of all recurring payment transactions, a dozen banks have already put in place the new setup where even for repeat payments the bank will alert the customer a day in advance and also provide them with a link to discontinue the mandate. “In the short term, there may be some disruption but, in the long term, this move by the RBI can take growth in recurring payment mandates off the charts,” said Razorpay chief technology officer and co-founder Shashank Kumar.

Kumar says the RBI directive addresses two key issues. Earlier, discontinuing a standing instruction to a merchant could be extremely cumbersome with some asking for a letter to be sent by post asking to discontinue the subscription. Second, debit cards were a grey area and recurring payments were done largely in credit cards. Incidentally, even after October 1, international mandates will continue as neither banks nor the RBI has jurisdiction over international billers.

“There are 900 million debit cards in India and their inclusion could increase the market multifold,” said Kumar. According to Kumar, by empowering customers to stop the payments at any time, the RBI has increased the confidence level. This could also make online education or entertainment more affordable as the availability of this facility will encourage providers to have a monthly debit model rather than recover annual fees.

Besides requiring banks to alert customers, the RBI has capped automatic debits at Rs 5,000 per month. This would mean that billers, like insurance companies, with large instalments, would need to increase the frequency to enable auto-debit. In the case of utilities, many online payers use their bank’s bill payment platform for standing instructions and will have no impact.



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