Bank of Baroda launched BHIM Baroda Pay with UPI 2.0 on Wednesday. This latest version includes the upgraded transactional and security features that come with UPI 2.0.
The new changes in UPI 2.0 include:
1. One-Time Mandate
With the UPI mandate feature, users can pre-authorize payment for a transaction by blocking funds for a future date to make a commitment at present.
One such use of the one-time mandate is for Initial Public Offering (IPO) applications under Application Supported by Blocked Amount (ASBA). SEBI allows UPI ID to be provided along with application to bid for an IPO.
On using the feature, the applicant's bank blocks the amount to be paid for the application and only releases it towards payment of shares if an allotment is made. UPI ID details along with bid details are provided by the exchange to the sponsor bank.
An intimate of this request is sent to the applicant over the UPI app and via a text message. The funds are blocked only after the applicant validates the request.
2. Overdraft account
Apart from savings and current accounts, NPCI has allowed customers to link their overdraft accounts to UPI.
Customers will now receive invoices from merchants prior to making a payment. This will help a customer view and verify the contents of the invoice including the merchant's name before initiating payments towards a collect request. However, the feature is only available for verified merchants.
The invoice can be viewed in the BHIM Baroda Pay UPI and paid accordingly.
4. Signed Intent and QR
On making payment using intent or through scanning QR, the customer will get additional security in the form of signed QR/intent. The signed QR lowers chances of issues related to tampering of QR as well as non-verified suspicious entities.