Irdai permits insurance premium payment through blocked amount on UPI

The Insurance Regulatory and Development Authority of India (Irdai) has allowed One-Time Mandate (OTM) on Unified Payments Interface (UPI) for insurance companies. The feature will allow policyholders to block funds in their bank accounts for specific transactions.

“Under the facility called the Bima Applications Supported by Blocked Amount (Bima-ASBA), the transfer of money from the prospect to the insurer happens only when an insurance policy is issued. In this facility, insurers can offer a one-time mandate for blocking a certain amount through UPI in the bank account for the concerned prospect,” Irdai said.