• The governor of the RBI thinks the new system will increase trust.
• Blocking funds will produce a payment mandate.
• To execute the improvement, specific instructions will be sent to NPCI.

The decision to add a feature to the UPI platform to assist with payments where the delivery of goods and services occurs later, such as with e-commerce transactions, hotel reservations, or stock investments, was made, the RBI announced on Wednesday. Customers will feel more secure when making such transactions because to the Unified Payment Interface (UPI) platform's 'single-block-and-multiple debits' capability. 

After announcing the bimonthly policy review, RBI Governor Shaktikanta Das said, 'It has...been decided to offer a single-block-and-multiple-debits functionality in UPI, which will greatly boost the simplicity of making payments in the e-commerce arena and towards investments in securities.' 

Das claims that by designating funds in their bank account for specific reasons that can be deducted at any moment, customers can create a payment mandate against a retailer. The governor asserts that such a facility would boost the degree of trust in transactions since companies would be assured of fast payments and because the money would remain in the customer's account until the goods or services were actually provided. 

According to the governor, the functionality will be helpful when purchasing government securities using the RBI's retail direct scheme. He continued by saying that detailed instructions on how to implement the change will be given to the National Payments Corporation of India (NPCI).

 Das also revealed that all payments and collections would henceforth be handled via the Bharat Bill Payment System (BBPS). Das claims that, even if they are recurring in nature, BBPS does not yet have a mechanism to manage non-recurring payments or individual collection demands.

 As a result, the platform does not pay for professional services, education expenses, taxes, or rent. Das claims that the new approach will make the BBPS platform accessible to a larger group of individuals and organisations, allowing them to benefit from the platform's increased efficiency, quicker access to funds, and transparent and reliable payment experience. He said that specific instructions on this will be given to NPCI Bharat BillPay (NBBL).