How UPI Autopay Works? Know Setup Process, Benefits and Limit

Digital payments have rapidly become a part of everyday life in India. Furthering this change, the National Payments Corporation of India launched the UPI Autopay feature on July 22, 2020. This feature allows users to automatically set up their regular payments, such as electricity bills, subscriptions, loan EMIs, investments, and insurance premiums.

Recently, the Reserve Bank of India increased the autopayment limit to ₹1 lakh per transaction, making this feature useful for larger financial payments as well.

What is UPI Autopay?

UPI Autopay is a digital feature that allows users to set up automatic payments from their bank account on a specified date. It can be used for monthly bills, OTT subscriptions, investments, and other regular expenses.

The increasing use of digital services and subscription-based platforms has necessitated the need for such a feature. This feature eliminates the need for users to make manual payments each time, ensuring timely payments.

Due to the rapid growth of digital transactions and online services in India, the demand for auto payments is constantly increasing. This feature is especially useful for those who manage multiple subscriptions and bill payments simultaneously. It is also beneficial for businesses and service providers as they receive timely payments.

How UPI Autopay Works

To set up UPI Autopay, a user needs to use a UPI app that supports this feature, such as Paytm.
The user first selects the service or biller, then allows the app to auto-debit the bank account.
The payment date, frequency, and amount are then set.
Once setup is complete, the amount is automatically deducted at the scheduled time.

Changes due to the new increased limit

With the auto payment limit increased from ₹15,000 to ₹1 lakh, even large payments can now be easily made in auto mode.

This will be particularly beneficial for mutual fund investments, insurance premiums, and credit card bill payments. This has further strengthened the reach of digital payments.

Benefits of UPI Autopay

This feature allows users to make secure and fast payments without any paperwork. This ensures timely bill payments and avoids late fees.

It promotes a completely digital and cashless system. It also gives users the option to change, pause, or cancel payments at any time.

The auto-payment system is expected to become even more robust in the future under the Digital India Mission. With higher limits and improved security features, this feature could become an essential tool for both individuals and businesses.