The Reserve Bank of India has introduced a single-block-and-multiple debits functionality in UPI to augment payments for ecommerce and investments in securities. According to RBI, the functionality will make payments easier for ecommerce and investments in securities.

It would be helpful for hotel bookings, purchase of securities in the secondary capital market, as well as purchase of government securities using the central banks’ Retail Direct scheme, ecommerce transactions etc. Increasing trust in UPI This aims to build a higher degree of trust in transactions as merchants will be assured of timely payments, while the funds remain in the customer’s account till actual delivery of goods or services. Customers can also enable a payment mandate for a merchant by earmarking funds in their bank accounts for debits whenever required.

Officials from FIS commented that customers will be able to block funds in their accounts for various payments. It will facilitate in making smoother e-payments and increase the efficiency of online checkouts during ecommerce transactions. UPI currently enables mandates for recurring transactions and single-block-and-single-debit functionality.

More than 7 million autopay mandates are handled monthly and more than half of Initial Public Offer (IPO) applications are processed using the block feature of UPI. UPI’s position in the market RBI will issue instructions to the National Payments Corporation of India (NPCI), which runs and manages UPI, on the new functionality shortly. UPI has emerged as one of the most popular and preferred payment modes in the country, so much so that UPI person-to-merchant (P2M) has captured 42% share in volume of digital payment transactions and UPI person-to-person (P2P) has captured 65% share in volume of transactions during July – September 2022 period, according to a report by Worldline.

Volume and value of UPI transactions have continued to be on an upward trajectory for the last since 2020, apart from minor blips witnessed in some months because of the pandemic related restrictions, mirroring the recovery in the broader economy and the increased adoption of consumers to use digital modes of payments for their daily transactions. .