Are you someone who invests in Mutual Funds through SIP? Are you tired of trying to time the market for your long-term investments? Do you find yourself constantly stressing over when to invest?
If yes, then you are not alone. Many investors face this problem, which can affect the overall returns of their investments.
But worry not! There is a solution to this problem – Set up your UPI Autopay
1. What is UPI Autopay?
UPI Autopay is a new-age payment mechanism that allows you to automate your recurring payments such as SIPs, loan, utility bills and insurance premiums. It is a feature offered by the Unified Payment Interface (UPI), which is a payment system developed by the National Payments Corporation of India (NPCI).
UPI Autopay is pretty simple and easy to use. After approving a transaction via a UPI PIN, recurring payments will be deducted automatically from the customer’s linked bank account without any further action required from them.
In case it’s necessary, customers can stop or cancel automatic payments using the UPI app or the Merchant App. Payments can be set up for a weekly, monthly, quarterly, half-yearly, yearly, or as-presented frequency.
2. How does UPI Autopay work?
When you set up UPI Autopay for your SIP payments, the amount will be automatically debited from your bank account on the specified date every month. You don’t have to remember the payment due date or initiate the payment manually. It’s a hassle-free and convenient way to make your SIP payments.
That was simple, wasn’t it?
However, here’s another fantastic feature of UPI Autopay that can assist you in maintaining the regularity and control of your recurring payments.
This is a terrific feature of UPI Autopay as it reminds users to fund their bank account or pause the autopay. This helps to avoid debit attempts to your bank account on SIP day. Additionally, it keeps users informed about upcoming automatic deductions from their bank account.
By receiving pre-debit notifications, you can keep track of your finances, ensure that you have a sufficient balance in your account, and avoid any overdraft charges or penalties.
Let’s understand this with the help of an example:
Let’s say you have set up UPI Autopay for your mutual fund investments, and the deduction date is the 5th of every month. A pre-debit notification will be sent to your registered mobile number or email address 24-48 hours before the deduction date (eg: on the 2nd or 3rd of the month) to inform you about the upcoming transaction. This notification will include details like the transaction amount, the name of the service provider, and the date of the deduction.
UPI Autopay Limit for Recurring Payments
It’s important to know that there are different levels of authorization required for different transaction amounts in UPI Autopay. No authorization is required for transactions under Rs.15,000, but you must set up your SIP once through UPI pin authorization, after which the payment will be automatically deducted from your bank account for future SIPs. However, for transactions exceeding Rs.15,000, you must authorize the payment via the UPI app or enter your UPI PIN on the SIP day, as required by NPCI.
Please note that Rs.15,000 limit is per transaction.
This extra step ensures that you have control over larger transactions and helps to prevent any unauthorized deductions from your account.
3. Benefits of UPI Autopay
UPI Autopay has numerous benefits. Few of them are listed here:
- No more missing payment: With UPI Autopay, you don’t have to worry about missing your SIP investments due to forgetfulness or a busy schedule. The payment will be debited automatically on the due date.
- Convenience: Setting up UPI Autopay is a one-time process that takes a couple of minutes. Once set up, you don’t have to initiate the payment manually every month.
- Security: UPI Autopay is a secure payment mechanism that uses two-factor authentication (2FA) for every transaction. You can also set a transaction limit for UPI Autopay to prevent any unauthorized debit from your account.
- Cost-effective: UPI Autopay is a cost-effective way to make your SIP investments. You don’t have to pay any additional charges for using UPI Autopay.
- Single Autopay: You can set-up multiple SIPs on a single Autopay.
The entire UPI Autopay process simplifies and streamlines your investment. There’s no need to be concerned if you’re unsure about which app to use for UPI Autopay. You can confidently invest using the Paytm Money app, which offers an easy and reliable way to set up automatic payments for your Mutual Funds Investments. With Paytm Money, you can link your bank account, select your preferred mutual funds, and schedule recurring payments all in one place.
To know more about the process, check out this video:
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete Terms & Conditions and Disclaimers visit: https://www.paytmmoney.com/stocks/policies/terms