Introduction: In its ongoing efforts to improve the UPI AutoPay experience, the National Payments Corporation of India (NPCI) issued a crucial circular, NPCI/UPI/OC-151A/2023-24, on 14th December 2023. This circular addresses members of the Unified Payments Interface (UPI) and outlines enhancements in limits for UPI AutoPay, particularly for recurring payments. This article breaks down the key changes, their implications, and the resulting benefits for users and businesses.
Detailed Analysis:
1. UPI AutoPay Background: Introduced in July 2020, UPI AutoPay enables users to set up recurring e-mandates for payments such as mobile bills, electricity bills, EMI payments, and subscriptions. NPCI’s recent circular is in response to the Reserve Bank of India’s decision (Circular RBI/2023-2024/88) to increase the transaction limit from ₹15,000 to ₹1,00,000 for specific categories, including mutual funds, insurance premiums, and credit card bills.
2. NPCI’s Limit Relaxation: Aligning with RBI’s directive, NPCI revises its circular NPCI/UPI/OC-151/2022-23. The UPI AutoPay Additional Factor of Authentication (AFA) limit, requiring a UPI PIN, has been increased from ₹15,000 to ₹1,00,000 for designated Merchant Category Codes (MCCs) mentioned in Annexure A.
3. Implementation Guidelines: For transactions exceeding ₹1,00,000, Payer Apps will capture UPI PIN as AFA. Issuer Banks, in addition to validating Digital Signature (DS) and UPI PIN, will process transactions up to ₹1,00,000 based on DS alone. AFA is exempt for the first execution within 5 mins and amounts less than or equal to ₹1,00,000.
4. Communication and Compliance: PSPs are mandated to notify users before and after mandate execution via push notifications, while Issuer Banks must use SMS notifications. Acquirer banks are instructed to enable only merchants from RBI-approved MCCs.
Conclusion: NPCI’s move to enhance UPI AutoPay limits signifies a commitment to user convenience and the evolving landscape of digital transactions. With increased limits and streamlined processes, users can enjoy a more seamless and secure recurring payment experience. Members of the UPI ecosystem are urged to familiarize themselves with the changes and ensure compliance for a smooth transition.
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NPCI
NATIONAL PAYMENTS CORPORATION OF INDIA
NPCl/UPI/OC-151A/2023-24 Dated: 14th December, 2023
To,
Members – Unified Payments Interface (UPI)
Dear Madam/ Sir,
Enhancement of Limits for UPI AutoPay
UPI Autopay (referred to as e-mandate for recurring payments functionality) was launched on July 2020. With this facility, customers can now enable recurring e-mandate using any UPI Apps, for recurring payments such as mobile bills, electricity bills, EMI payments, entertainment/OTT subscriptions, insurance, mutual funds among others.
A reference is invited to Circular RBI/2023-2024/88 CO.DPSS.POLC.No.S-882/02.14.003/2022-23 issued by Reserve Bank of India (RBI), dated 12th December 2023 with subject “Processing of e-mandates for recurring” whereby RBI has decided to increase the limit from 15,000/- to 1,00,000/-per transaction for the following categories:
(a) subscription to mutual funds,
(b) payment for insurance premium, and
(c) payments for credit card bills.
In line with the aforementioned circular, NPCI circular NPCl/UPI/0C-151/2022-23 dated 23rd June 2022, is being revised. UPI AutoPay Additional Factor of Authentication (AFA) (viz. UPI PIN) limit has been relaxed from 215,000/- to 1,00,000/- for the Merchant Category Codes (MCC) mentioned in Annexure A with immediate effect.
For the MCCs mentioned in Annexure A:
1. Payer Apps shall capture UPI PIN as an AFA, if the UPI AutoPay execution amount is more than 21,00,000/-, whereas process the execution without AFA for the transaction amount less than or equal to 21,00,000/-.
2. In addition to point i, Issuer Banks shall validate Digital Signature (DS) and UPI PIN for execution amount more than Rs. 1,00,000/-. For execution amount less than or equal to ,71,00,000/-, Issuer Bank shall process the execution basis the DS only.
1001A, The Capital, B Wing, 10 Floor,
Bandra Kurla Complex, Sandra (E), Mumbai 400 051.
T: +91 22 40009100 F: +91 22 40009101
contact@npci.org.in www.npci.org.in
CIN: U74990MH2008NPL189067
3. AFA shall not be required for the 1st execution happening immediately (within 5 mins) of mandate creation for amount less than or equal to Rs. 1,00,000/-
4. It is mandatory for the PSP to notify the user before and after execution of any mandate via push notification, and issuer Bank to notify the user via SMS before and after execution.
Members are hereby requested to take note of the above and ensure compliance.
Thanking You,
SID/-
Kunal Kalawatia
Chief of Products
Annexure A
List of Merchant Category Code eligible for limit enhancement
| Sr No | MCC | Description |
| 1 | 5413 | Credit Card Bill Payments |
| 2 | 5960 | Direct Marketing Insurance Services |
| 3 | 6012 | Financial Institutions Merchandise and Services |
| 4 | 6211 | Securities brokers and dealers |
| 5 | 6300 | Insurance sales, underwriting and premiums |
| 6 | 6381 | Insurance Premiums |
| 7 | 6399 | Insurance |
| 8 | 6529 | LIC |
Note: Acquirer banks to enable only merchants from the category of merchants allowed by RBI in respective MCCs.
