MC Explainer: Single block and multiple debits functionalities of UPI

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The RBI in its monetary policy committee (MPC) meeting said it will introduce single block and multiple debits functionality in payments done through the unified payments interface (UPI). RBI Governor Shaktikanta Das said the capabilities of UPI will be enhanced by introducing single-block-and-multiple-debits functionality.

Customers using UPI can use the single block feature to block certain amounts in their bank accounts for specific payments. A major difference between the mechanism is that at present, there is only single debit transactions functionality for a single block in the UPI. In other words, customers can only block one debit transaction in their accounts for their choice of payment.

But with the new single block and multiple debits feature, customers can block multiple transactions on their account for specific transactions which will in turn make automated payments easier and quicker.

Das said that this feature will significantly enhance the ease of making payments for investments in securities including through the retail direct platform as well as e-commerce transactions.

Data from the National Payments Corporation of India (NPCI) noted that transactions through UPI in November 2022 crossed 731 crores in volume, totaling more than Rs 11.90 lakh crores.