The Reserve Bank of India (RBI) has stated that the retail payment system UPI is soon going to have a new function, termed as single-block-and-multiple-debits. As per the RBI, this facility will allow customers to block funds in their account for specific purposes, like placing an order on e-commerce platforms such as Amazon and Flipkart. The funds can be debited whenever required. At present, e-commerce contains two major payment options, namely prepaid (online payment) and postpaid (cash-on-delivery). When it comes to prepaid, many customers are skeptical and give preference to payment after delivery. But in case of the postpaid system, the merchants can face a payment risk.This feature is going to assure merchants of timely payments, and the buyers will be able to pay after the delivery. With the new system, customers will be able to give a mandate to the merchant whereby a specific amount will be blocked to buy goods and the money will be debited after the goods are delivered. This is going to be ideal for customers also as the amount won’t be deducted, but will just be blocked until the goods have been delivered.The RBI stated that the feature will enhance the degree of trust in transactions because merchants are going to be assured of timely payments, while the funds will remain in the account of a customer till the goods or services are delivered. According to the RBI, detailed instructions will be shortly issued to the National Payments Corporation of India (NPCI).The single-block-and-multiple-debits functionality can be utilised for various purposes which include:Hotel bookingsE-commerce transactionsBuying securities in the secondary capital marketPurchasing government securities via RBI’s Retail Direct scheme.The central bank has also decided to enhance the scope of Bharat Bill Payment System (BBPS) to include all categories of payments and collections, including recurring and non-recurring, for every category of biller. It will enable people to make fee payment for purposes like professional services, tax payment, education, rent collections, etc. At present, BBPS deals with the payments for recurring bills for merchants and utilities and does not cater to non-recurring payments.Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.
Creator :FP Trending
Published on : 2022-12-09 08:42:29
Source :firstpost
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