RBI to launch new feature on UPI for E-commerce

The Reserve Bank of India (RBI) has decided to add a feature called ‘single-block-and-multiple debits’ in the UPI platform to help in payments where delivery of goods and services happens later, like e-commerce purchases, hotel bookings or investments in securities.

RBI Governor Shaktikanta Das said that this kind of facility will build higher degree of trust in transactions as merchants will be assured of timely payments, while the funds remain in the customer’s account till actual delivery of goods or services.

The Governor said, “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.”

Through this feature, customers will have more trust while carrying out such transactions. The governor said the feature will also be helpful in purchase of government securities using the RBI's retail direct scheme.

The new system will make the Bharat Bill Payment System (BBPS) platform accessible to a wider set of individuals and businesses who can benefit from the transparent and uniform payments experience, faster access to funds and improved efficiency.