The Reserve Bank of India (RBI) said it will introduce a new feature for UPI platforms to enable easier and more secure UPI payments. This feature is called "single block, multiple debits" and it will be useful in situations where goods and services are delivered after payment has been made.
“It has been decided to introduce the functionality of single block and multiple discount in UPI, which will greatly improve the ease of making payments in the field of e-commerce and towards investments in securities,” the PTI news agency quoted the governor of the state as saying. RBI Governor Shaktikanta Das. According to him, after announcing the bimonthly policy review.
What is a single block, multiple debits
Single Block, Multiple Debits is a feature where customers can create a payment authorization against a merchant by blocking funds in their bank accounts for specific purposes, such as shopping on e-commerce websites, making hotel reservations, or investing in securities.
This money will remain with consumers and will be deducted once the product or service is delivered.
How it will help consumers and merchants
Sometimes it happens that the consumer has made the payment and the product he bought on the e-commerce site is not delivered. On the contrary, merchants sometimes have to face similar product delivery issues and UPI payment failures.
In such cases, money is debited from the consumer's account and they are often reluctant or refuse to make another transaction for fear of paying more for the same product if the first payment arrives. There is also a chance that the second batch will crash as well.
This feature will provide a sense of trust to consumers by assuring them that the payment made for a good or service will only materialize once they receive the good or service. Furthermore, it will also provide a guarantee to merchants that they will be paid once the goods or services are delivered.
"This facility will create a greater degree of trust in transactions, as merchants will ensure timely payment, while funds remain in the customer's account until actual delivery of goods or services," the governor noted, adding that the function will also be useful in the purchase. government securities using the Direct Reserve Bank of India retail scheme.
The National Payments Corporation of India (NPCI), which facilitates services such as UPI Payment, Bharat Bill Pay, RuPay Card and FASTag, will also issue separate instructions to implement the feature.
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