What is UPI AutoPay and How to Set Up? Know in Detail Everything

Digital payments have rapidly become a part of everyday life in India. In this regard, the National Payments Corporation of India launched the UPI AutoPay feature on July 22, 2020. Its purpose was to simplify and automate regular payments such as bills, EMIs, insurance, investments, and subscriptions. To promote digital transactions, the Reserve Bank of India increased the autopayment limit to ₹1 lakh per transaction. This has made large recurring payments such as investments, insurance, and credit card payments easier.

Regular expenses such as OTT, insurance, loans, and utility bills are driving the demand for automated payment systems. UPI AutoPay addresses this need and helps customers make timely payments.

What is UPI AutoPay?

UPI AutoPay is a digital e-mandate system that allows customers to set up regular payments by giving one-time permission. The money is then automatically deducted from their account on the scheduled date. This feature is useful for payments such as mobile bills, electricity bills, EMIs, mutual fund investments, and insurance premiums.

The rise of digital services and subscription-based platforms has necessitated this feature. This eliminates the need for customers to manually make payments each time, ensuring timely payments.

How to Set Up UPI AutoPay

UPI AutoPay first involves setting up an e-mandate on any supported UPI app, such as Paytm. The customer then sets the payment date, amount, and term. Once authorized with the UPI PIN, the system automatically deducts the funds at the agreed time.

The system also sends a notification before the payment to keep the user informed. If necessary, the customer can pause, modify, or cancel the mandate.

New Transaction Limit

Under the new limit, auto-debit up to ₹1 lakh is possible for certain categories. Previously, this limit was lower, which caused difficulties with larger payments. Now, payments such as mutual fund investments, insurance premiums, and credit card bills have become easier. This will increase trust in digital payments and allow larger financial transactions to be conducted using UPI.

Key Benefits of UPI AutoPay

UPI AutoPay ensures timely payments, avoiding late fees or penalties. It is a completely digital and secure system that requires no paperwork. Customers can choose a payment term at their convenience. They also have the option to pause or modify payments.