Indian banks have requested the Reserve Bank of India (RBI) to allow its customers with the UPI 2.0 enabled devises to use the recurring payments feature for monthly loan repayments, said industry sources.
The recurring debit feature was one among the most anticipated by banks. It was expected to be launched with the newly-implemented technology launched by the National Payment Corporation of India (NPCI) in August 2018.
However, citing the possible misuse of the feature as one of the major concerns, the central bank decided not to implement this feature with the official version, much to the disappointment of banks.
At the launch of the technology last year, Indian Banks’ Association had submitted a detailed proposal to the regulators requesting permission for using this feature by regulated financial entities.
This feature would have enabled automatic debits of loans and premiums from customers looking forward to avail the service.