At present, Unified Payments Interface (UPI) auto payments exceeding ₹15,000 are subject to one-time password (OTP)-based authentication. The extra factor of authentication (AFA) will no longer be required for transactions up to ₹1 lakh under the revised plan.
The RBI has suggested waiving the need for additional factor authentication (AFA) for routine payments of credit card bills, insurance premiums, and mutual fund subscriptions up to a total of Rs 1 lakh.
Users who routinely use UPI for their SIPs and credit card bills would benefit from this because their monthly involvement in processing insurance premium payments and credit card bill payments will be eliminated as these transactions become automated.
Understanding UPI AutoPay
UPI AutoPay is the name of the UPI Automatic Payment feature. The user can use it to plan regular monthly payments for things like utility bills and subscriptions. On the day the user specifies, the payment will be made, and the stated amount will be automatically taken out of the user’s bank account.
The user has the option to “Mandate” in the majority of UPI applications. The user can create, approve, alter, pause, or withdraw the mandate for auto-debit using this option. To utilize this function, the user must give the merchants they wish to have the platform automate payments for a one-time approval. Other information that must be entered by the user includes the payment amount, merchant information, subscription start date, payment frequency, etc.
