UPI to now allow blocking money for multiple debits, paves way for ASBA

The Reserve Bank of India (RBI) on Wednesday enhanced the capabilities of the Unified Payments Interface (UPI) by introducing a ‘single-block-and-multiple debits’ functionality, which allows a customer to enable a payment mandate against a merchant by blocking funds for specific purposes in his/her bank account which can be debited, whenever needed.

Also, the RBI said the Bharat Bill Payment System (BBPS) will now include a wider variety of recurring and non-recurring payments.

The single-block-and-multiple debits feature is expected to have multiple use cases in various segments, such as e-commerce transactions, investment in the secondary market and purchase of government securities