RBI Urges NPCI to Tackle UPI Autopay Issues
The Reserve Bank of India (RBI) has raised concerns about the increasing complaints related to UPI Autopay, a service that facilitates automatic recurring payments for various subscriptions and bills. As the adoption of this digital payment method grows, users have reported issues such as unauthorized debits and challenges in cancelling subscriptions. This has led the RBI to urge the National Payments Corporation of India (NPCI) to investigate these rising complaints.
Since its launch in 2020, UPI Autopay has seen a significant increase in usage, with nearly 1 billion transactions processed each month. However, many users have expressed frustration over unclear onboarding processes, limited visibility of active mandates, and difficulties in cancelling subscriptions. These issues have prompted the NPCI to hold discussions with third-party application providers and other stakeholders to address these concerns and ensure compliance with existing norms.
In response to the complaints, the NPCI has begun implementing changes to enhance the user experience. For instance, users will soon be able to manage their UPI Autopay mandates across different applications, allowing for greater control over their subscriptions. The NPCI has also emphasized the importance of clear communication regarding mandate creation, cancellation, and notifications, ensuring that users are fully aware of the automatic payments being deducted from their accounts.
Despite these improvements, challenges remain. Many users mistakenly believe that deleting an app will stop the automatic payments, not realizing that these mandates are processed at the bank level. Additionally, there have been instances where users did not receive timely notifications regarding debits, relying solely on bank SMS alerts, which they may overlook.
To further address these issues, the NPCI has introduced a centralized UPI Help portal that enables users to track and cancel their mandates. This portal aims to ensure users have clear consent and notification frameworks, as well as an online grievance channel. However, experts emphasize that such tools will only be effective if users are aware of their active mandates in the first place.
The rise of digital subscriptions, particularly in sectors like fintech, wellness, and content, underscores the importance of a robust recurring payments infrastructure. As UPI Autopay continues to expand, the need for transparency and user-friendly processes will be crucial in maintaining user trust and satisfaction in India's evolving digital payment landscape.
