An eMandate is an official message drafted and issued by an individual to a bank in order to pay your bank. The National Payments Corporation of India (NPCI) is said to come up with a new version of its Unified Payment Interface (UPI) 2.0 that will accompany electronic mandates allowing customers to pre-authorize transactions. Once the new UPI feature is approved by the Reserve Bank of India (RBI), customers can customize an eMandate according to his/her requirements. This means that an eMandate under UPI can be cancelled anytime and customers can add, update or delete the mandate anytime.
Features Of UPI 2.0
Payment Of Bills
Currently, UPI is used to transfer money to the person who possesses the bank account. With the introduction of UPI 2.0 you can pay his/her telephone, electricity, insurance and credit card bills from anywhere and at any time.
This feature comes in handy when you forget to pay your bills. Using UPI, you can authorise certain billers to draw the billed amount automatically before the due date. This will make you stress-free about your bill payments. You also have an option to limit the maximum amount and applicable date.
Biometric Verification & Resolving Errors
Since the dawn of fingerprint sensors, the secure feeling of unlocking your mobile has added a layer of personal security to your data. Similarly, an iris scanner and fingerprint scanner will be used for UPI based payment authentication. To offer this service, UPI will have to employ the services of an Aadhaar card. This will end the need of of MPIN during any UPI money transfer.
It is common that the same mobile number is registered to the account of the father, mother, brother or sister etc. If so, the UPI pops an error tab once the same mobile number is linked to another individual’s bank account. The UPI will resolve such a problem in its upcoming UPI 2.0.
Scheduling Pay & Aadhaar Enabled Payments
Currently, you cannot schedule a payment using UPIs payment system. UPI 2.0 is said to house a scheduling feature of which will give it make it flexible for payers. Currently, UPI uses virtual payment address instead of an IFSC code or bank account of the payee. The UPI will also facilitate payments using an Aadhaar number. Similar to that of your mobile number, your Aadhaar card has a unique number too.
UPI 2.0-Based eMandate: A Game Changer
UPI 2.0 will be a real game-changer in the India digital payment space. Take, for instance, you give Uber an eMandate to deduct money from your bank directly. This would mean cutting all intermediaries like payment gateways and online wallets that you depend upon. On the drivers’ side, Uber can make fast payments cutting out the services of the middleman and also provide driver benefits like insurance and saving schemes through eMandates and tie-ups with banks and service providers.
Imagine being able to save money that a driver receives on a daily basis. With such an idea in mind, the online taxi company’s can order every driver to install the UPI based payment app called Bharath Interface For Money (BHIM) and make online savings instantly. This will help drivers who are not educated, thus introducing them to a realm of online payments and savings.
A similar case wherein, Whatsapp, Google, Amazon, Flipkart and Paytm are building payment products in India based on UPI infrastructure as its base. WhatsApps developer version shows that the company has already placed a code that makes peer-to-peer payments possible on messenger. Peer-to-peer payments on WhatsApp can be used to boost small and medium businesses that heavily rely on instant messenger to do business.
In such cases the UPIs version 2.0 of eMandate will come in handy. Imagine paying your milkman every month automatically without you having the trouble of transferring your funds online. If tech companies with 100 million users in India adopt UPI 2.0-based payment, the number of transactions could cross a considerable 100 million a month.