Guwahati: Shaktikanta Das, governor of the Reserve Bank of India (RBI), announced on Wednesday that the bank had decided to add a new feature to its Unified Payments Interface (UPI) platform where the service or product delivery occurs later, such as with online purchases, hotel reservations, or stock investments.
The RBI Governor claimed that the “single-block-and-multiple debits” function on the UPI platform will increase customer confidence while making such transactions.
According to Shaktikanta Das, the single-block-and-multiple-debits functionality will allow customers to set aside money in their accounts for specific uses that may then be debited as needed.
“It has…been decided to introduce a single-block-and-multiple-debits functionality in UPI, which will significantly enhance the ease of making payments in e-commerce space and towards investments in securities,” RBI Governor Shaktikanta Das said after announcing the bi-monthly policy review.
According to Governor Shaktikanta Das’ speech posted on the RBI website, this option would allow a client to set aside money in his or her account for certain uses that could be debited as needed. This would greatly improve how simple it is to make payments for securities investments, particularly through the Retail Direct platform and online sales.
The Governor also announced that the RBI was extending the Bharat Bill Payment System’s capabilities.
He claimed that the BBPS has been steadily growing since its introduction in 2017 and that it presently only accepts payments for regular bills from businesses and utilities.
The governor of the RBI stated that even regular bills like those for professional services, school costs, taxes, and rent collections for individuals are not taken care of by the organisation.
He explained that as a result, the BBPS’s purview is being expanded to cover all types of billers and payments, both recurring and non-recurring (businesses and individuals).
“This will make the BBPS platform accessible to a wider set of individuals and businesses which can benefit from the transparent payments experience, faster access to funds and improved efficiency,” he added.