Sign In
Learn bits
Economy
Mahesh

08/12/22 08:40 AM IST

RBI to introduce single-block-and-multiple debits functions in UPI

In News
  • While announcing the December monetary policy, RBI recently decided to introduce the functionality of a single-block-and-multiple debit in UPI.
Single block & Multi-debit
  • The single block multiple debit feature of the UPI will enable users to separate and block funds in their accounts for specific purposes.
  • This feature enables customers to create a payment mandate against a merchant by blocking funds in their bank account for specific purposes that can be debited as per the needs.
  • It will enable ease of e-commerce transactions and smooth transactions in securities market.
  • It will be especially useful for hotel bookings, purchase of securities in the secondary capital market, and purchase of government securities using RBI’s Retail Direct scheme.
  • This will ensure merchants the timely payments from customers, while the funds will remain in the customers’ account until the actual delivery of goods or services is made.
Significance
  • The development will be helpful for hotel bookings, the purchase of securities in the secondary capital market as also purchase of government securities using the RBI’s Retail Direct scheme, e-commerce transactions, etc.
  • It will 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 the actual delivery of goods or services.
  • Unified Payments Interface (UPI) has emerged as a popular retail payments system for Person to Person (P2P) and Person to Merchant (P2M) transactions.
  • More than 70 lakh autopay mandates are handled every month and more than half of Initial Public Offer (IPO) applications are processed using the block feature of UPI.
Source- Live Mint

More Related Current Affairs View All

28 Jan

What is DeepSeek?

'Chinese startup DeepSeek’s launch of its latest AI models, which it says are on a par or better than industry-leading models in the United States at a fraction of the cost,

Read More

27 Jan

Geo-tagging and ‘Aadhaar’ of Chinar tree

'The Jammu & Kashmir government has launched the “Tree Aadhaar” mission for the conservation of the region’s chinar trees which have been dwindling in numbers

Read More

25 Jan

NITI Aayog launches the “Fiscal Health Index 2025” in New Delhi

'Mineral-rich Odisha, Chhattisgarh, Goa and Jharkhand have emerged as top-performing 'achievers' among the States listed in NITI Aayog's first Fiscal Health Index (FHI) report rele

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps