One-Time Mandate and Other Features of UPI 2.0

The UPI or Unified Payment Interface has added One-time mandate and some other new features. The NPCI has launched the UPI 2.0. This version has given more facilities to the merchants and business community. After this version, the UPI Add would have 5 new features.

Recommended- What is UPI Payments System

1- One-Time Mandate Through UPI App

The one-time Mandate is similar to scheduled payment. You may be availing of this feature with the internet banking. But, It has some extra benefit as you can also fix a maximum limit for the payment. A biller can fetch an amount up to that limit. It is very useful in the cases of electricity or telephone bill payment. The ECS mandate is also similar to this feature.

The one-time mandate gives you the facility to schedule a payment in the future date. Once you set the mandate for the payment you are not required to do anything at the time of the payment.

As you set a One-Time Mandate, the amount is blocked at your account. You can’t use that amount for any other purpose. However, since money remains in your account, you would keep getting the interest. You can give a one-time mandate for the regular payment as well.

The features can be very useful in certain situations.

• If you pay fixed bill amount every month
• You are paying some amount in instalments.
• You have to pay an amount to someone at a future date. You are not required to remember the payment.
• It is useful to pay rent.
• You can use One-time Mandate of UPI instead of the Post-dated Account Payee cheques. It would give similar assurance to the person who gets the amount.

Rules of UPI One-Time Mandate

1. You can set the beginning and end date of the mandate
2. You can give a mandate up to a fixed amount. The biller can withdraw an amount up to that limit. It is just like the NACH mandate.
3. A merchant can also ask for the One-time Mandate of the regular bills. You have to only approve that.
4. The user can also modify and revoke the UPI Mandate. However, there would be limitations for some type of mandate.
5. When you give a One-time mandate of a specific amount, the amount would be blocked in your account. The bank would pay interest on that amount as earlier.
6. If the full amount is not used, the remaining amount would remain in the bank account. The Block would be released after the expiry of the mandate.
7. The customer would get the notification both the times when a mandate is placed and at the time of actual payment.
8. At the time of balance check, you would see two amounts. The total balance and balance available for withdrawal.

2- Overdraft Account At UPI

Till now the UPI platform was only available for the saving and current account. But now, you can also link the overdraft account. This feature would be beneficial to those merchants who use the overdraft facility extensively. An overdraft account has following features.

• You can withdraw more amount than the account balance.
• The bank charges interest on excess withdrawal.
• No paperwork is required if you withdraw the excess amount. The amount is as easily available as your own account balance.
• You can prepay the amount at any time.
• The banks set an overdraft limit on the basis of your creditworthiness.

If you link your overdraft account to the UPI app, you would see two account balance. The first would be your actual account balance and second would be the available balance for withdrawal.

3- See Invoice in the UPI Apps

The UPI has a very useful and unique feature of ‘Request’. In this feature, anyone can demand money from another UPI user. This can be very useful for the merchants as they can ask money from the customers for their services and products. But while using this feature the merchants don’t have any way to justify their request. The customer could not know why a particular person is asking for that money? What are the details of the services or products for which someone is asking for money?

The invoice feature would end this problem. With this feature, a merchant can upload their invoice.

This feature is quite useful in the case of online shopping. If you choose the UPI payment method, you would be able to see the invoice for that payment in the UPI app itself. To understand it better, you can watch the following video.

4- QR Authentication Check

This feature is designed for customers to check the authenticity of merchants while scanning QR code. It notifies the user with information to ascertain whether the merchant is verified UPI merchant or not. This provides an additional security to the QR as well as intent. Transactions are processed faster as app passcode is not required in case of signed intent. It also negates the chances of QR tampering. Customers will be informed in case the receiver is not secured by way of notifications

I have produced the above portion as written in the circular. There is limited information about this. However, you can again watch the following video. It would be helpful.

5- Higher Transaction Limit

The UPI 2.0 has also relaxed the maximum limit of the transaction. It has now become 2.0 lakhs. Earlier only the transaction of up to ₹ 1 lakh permitted in a day. However, The circular says that this relaxation is given to the specific use case. There is no information about this ‘specific use’. I would update this post as I get the detail. Meanwhile, you can read my post on UPI transaction limit.

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Besides these new features, UPI gives you the basic facility of sending money, Requesting an amount, balance check and bill payments. There many UPI apps which gives these facilities. Among them Phoenpe, Paytm, SBI Pay, Tez and BHIM are most popular UPI apps.