- RBI Governor announced that UPI’s capacity will be enhanced through the introduction of single block and multiple debits functionality, enabling the users to block funds in their accounts to be used when in need.
- He also announced the expansion of the scope of BBPS to include all categories of payments and collections.
- 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.
Tags:
Economics
