UPI AutoPay

UPI AutoPay is a functionality that enables recurring payments on the UPI platform through electronic mandates (e-mandates). Launched under UPI 2.0 in July 2020, this feature allows customers to set up automatic debits for repetitive transactions such as monthly subscriptions, utility bills, loan EMIs, insurance premiums, OTT streaming subscriptions, and other recurring charges. With UPI AutoPay, a user can authorize a service provider to collect payments on a scheduled basis without manual intervention each time, while maintaining control and security through the UPI framework.

How it Works

Customers can create a UPI e-mandate via any UPI app for a specific amount and frequency (e.g. ₹500 on the 5th of every month for a mobile phone bill). When setting up the mandate, the user does a one-time approval by entering their UPI PIN, and subsequent payments execute automatically on the set schedule. The UPI app typically provides a “Mandate” section where users can view, modify, pause, or cancel these recurring instructions at any time. This gives flexibility to manage subscriptions or standing instructions conveniently from the mobile app.

Limits and Security

UPI AutoPay supports mandates for a wide range of amounts. For small recurring amounts up to ₹2,000, payments can be auto-debited without requiring the UPI PIN for each cycle. If the e-mandate amount exceeds ₹2,000, UPI will prompt the user to authenticate with the PIN each time before the debit is processed.

This threshold is in place to balance convenience with security; most routine bills (electricity, streaming, etc.) fall under ₹2,000, enabling truly automatic payment, whereas larger-value debits will still need user confirmation.

UPI AutoPay mandates can be set for various frequencies – one-time, daily, weekly, monthly, etc., as needed. The feature adheres to RBI’s e-mandate guidelines, ensuring customers have the ability to cancel or pause mandates easily and receive prior notifications for upcoming debits.

Benefits

UPI AutoPay has made recurring transactions seamless and timely. Customers no longer need to remember due dates for bills or subscriptions – late fees can be avoided by automating payments.

It also benefits businesses and service providers by assuring on-time collection. For instance, an insurance company can collect premiums via UPI AutoPay without chasing the customer, or a subscriber can enjoy uninterrupted service because the monthly fee is auto-paid.

The convenience and security (with the mandate set by the customer in a UPI app they trust) have led to rapid adoption of UPI AutoPay for things like OTT media subscriptions, SIP investments in mutual funds, utility bill payments, and even transit passes.

In essence, UPI AutoPay extends UPI’s instant payment capability to the realm of recurring transactions, eliminating manual effort while retaining customer control over mandates.