Automate your SIP payment with UPI Autopay7 min read
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 constantly stress when to invest?
If so, 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
What is UPI Autopay?
UPI Autopay is a new-age payment mechanism that allows you to automate your recurring payments, such as SIPs, loans, 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.
If they wish, 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.
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.
It was easy, right?
However, here’s another fantastic feature of UPI Autopay that can assist you in maintaining the regularity and control of your recurring payments.
Pre-debit Notifications
A pre-debit notification will be sent to your registered mobile number, email address and UPI app 24-48 hours before the deduction date. This terrific feature of UPI Autopay reminds users to fund their bank account or pause 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/email address / UPI App 24-48 hours before the deduction date (eg: on the 3rd or 4th 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 Maximum Limit for Recurring Payments
At Paytm Money, you can set up SIPs using UPI Autopay with a maximum limit of ₹15,000. After setting up your SIP once, the specified amount will be automatically deducted from your bank account for all future SIPs, providing a seamless and hassle-free investment experience.
Please note that the Rs.15,000 limit for Mutual Fund UPI Autopay is applicable per transaction. However, investors can schedule multiple SIPs in a day, cumulatively totalling up to a maximum of Rs.1,00,000.
Benefits of UPI Autopay
Using UPI Autopay for Mutual Funds offers several benefits, making the investment process more convenient and efficient. Here are some key advantages:
- Automated and Consistent Investments: UPI Autopay enables you to set up recurring, automated payments for your Mutual Fund investments. This ensures consistent contributions without the need for manual intervention, fostering a disciplined approach to investing.
- Timely Notifications: UPI Autopay systems typically provide pre-debit notifications, giving investors advance notice before scheduled transactions. These notifications help users stay informed about upcoming deductions, allowing them to ensure sufficient funds in their bank accounts.
- Compound Your Wealth Through Consistent Investments: UPI Autopay ensures the benefit of Rupee Cost Averaging, a strategy that minimizes the impact of market volatility. By consistently investing fixed amounts at regular intervals, you buy more units when prices are low and fewer units when prices are high. This compounding effect leads to a more balanced and risk-mitigated investment approach, enhancing the overall performance of your portfolio over time.
- Efficient Fund Management: Automation through UPI Autopay streamlines the investment process, contributing to more efficient fund management. Investors can set up autopay for multiple Mutual Fund schemes, making it easier to diversify their portfolio and manage various investments simultaneously.
- Security: UPI Autopay transactions are secured by the robust UPI infrastructure, which incorporates multi-factor authentication and encryption protocols. This ensures the safety of financial information during the transfer process.
- No Penalty Charges for Insufficient Balance: Even if your bank account doesn’t maintain the required balance on the SIP day, rest assured–no penalties will be levied, providing you with a stress-free investment journey.
Effortlessly Link Multiple SIPs to a Single Autopay
The benefit of being able to link multiple SIPs to a single UPI Autopay lies in the convenience and simplicity it offers investors. Instead of managing individual autopay setups for each SIP, investors can streamline their payment process by associating multiple SIPs with a single UPI Autopay. This consolidation not only reduces the administrative burden but also provides a unified and efficient way to handle recurring payments for various investment plans.
Investors can enjoy the following advantages:
- Simplified Management: With a single UPI Autopay set-up, investors can easily manage and track multiple SIPs without the need for separate autopay configurations for each investment.
- Reduced Administrative Hassle: The consolidation of SIPs under a single autopay simplifies the administrative process, reducing the effort required to set up and maintain multiple payment arrangements.
- Enhanced User Experience: Investors experience a more user-friendly interface, as they only need to monitor and manage one UPI Autopay for all their linked SIPs, contributing to a smoother and more seamless investment experience.
- Minimized Risk of Oversight: Linking multiple SIPs to a single autopay minimizes the risk of oversight or missed payments, as investors can focus on maintaining and monitoring one centralized payment arrangement.
Setting Up UPI Autopay for Mutual Funds: A Step-by-Step Guide
Setting up UPI Autopay for your Mutual Fund investments involves a series of steps. Here’s a guide on how you can do it:
- Open the Mutual Funds Dashboard on Paytm Money App
- Navigate to the Me Icon > Autopay Section
- Initiate Autopay Setup by clicking on Setup Autopay button
- Select the bank account to set the UPI Autopay
- Select the UPI App / UPI ID and click on “Proceed”
- Approve the autopay request by entering the UPI Pin
- Receive Confirmation of successful autopay setup
*Please make sure you select a registered bank account on UPI App for authorisation.
Wrapping it up!
The entire UPI Autopay process simplifies and streamlines your investment. There’s no need to worry if you’re not sure 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.
Furthermore, if you need any assistance, our dedicated customer support team, exg.support@paytmmoney.com is always available to help.
Unlock the convenience of seamless investing – set up UPI Autopay now if you haven’t already, and enjoy hassle-free automated payments for your Mutual Fund SIPs!
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
A Blog By Radhika Agarwal | Paytm Money
