What is the new single block multiple debits UPI feature?

UPI payments will now be more secure with the announcement of the new single block multiple debits service. This feature will enhance the user experience and offer convenience to buyers and sellers.

New UPI Feature

The Unified Payments Interface (UPI) is an online payment system that facilitates easy, quick, and secure payments. It was developed by the National Payments Corporation of India (NPCI) and offers instant, real-time transactions. In simple words, UPI allows you to make bank-to-bank transactions on your mobile. UPI is popular for its ease of use and convenience. 

And now, the Reserve Bank of India (RBI), in its bi-monthly policy review, has announced its decision to add a new feature to UPI platforms, called single block multiple debits. Read on to find out more about this feature. 

What is the single block multiple debits feature?

Single block multiple debits is one of the latest UPI features. It will enable customers to create a payment mandate against a particular merchant. They will be able to block funds in their bank account for specific purchases with the merchant that will be debited once the product or service is received. This new RBI policy will also simplify recurring payments for customers and merchants.

Also Read: India's Top 10 Digital Wallets And UPI Platforms

How is the single block multiple debits feature benefiting UPI service users?

The new merchant payment method will block the money in your bank account and not deduct it until you avail of the service or purchase the product. The money will get deducted after the delivery has been successfully completed. For instance, if you pay for a hotel booking through UPI, the money will be blocked in your bank account. The hotel will be credited with the money only after you avail of the concerned services.

The new UPI feature will also be helpful in e-commerce purchases and establish trust between the seller and the buyer. The customer will only pay money for the goods and services they actually use. On the other hand, merchants will be able to ensure timely payments and protect their businesses from fraudulent buyers.

The feature can also be helpful for those engaged in Systematic Investment Plan (SIP) transactions and the purchase of other investment securities. For example, when you invest in a mutual fund through an SIP, the money will be debited from your bank account only after the units have been bought and added to your mutual fund account.

Additionally, the feature will be helpful in the case of recurring purchases, such as OTT subscriptions, monthly grocery purchases online, monthly rentals, and others.

Also Read: How To Create Additional UPI IDs Using Google Pay

Impact of the single block multiple debits feature on users

There have been many instances of buyers being scammed and not receiving the promised products or services after making the payment. Merchants have also faced issues receiving payments on time, which can hinder their business’s operations. With the new feature, users will be empowered, and instances of fraud by deceitful sellers will be eliminated. Sellers will also enjoy timely and secure payments without the need for multiple follow-ups.


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