Overview

Block funds once and debit automatically as products or services are delivered with UPI Reserve Pay

UPI Reserve Pay is a payment framework that enables you to block customer funds upfront and debit automatically as products or services are delivered. It combines the security of One-Time Mandates (OTM) with the flexibility of multiple debits, ensuring high payment success rates and enhanced customer experience.

Reserve Pay supports the following payment modes:

• Savings Account (UPI-linked)
• Credit Line on UPI
• RuPay Credit Card on UPI

Key features

UPI Reserve Pay provides the following capabilities:

• Single block, multiple debits: Block a maximum amount once and debit multiple times against the blocked amount.
• Guaranteed funds: Pre-blocked funds ensure payment collection without dependency on the customer’s future account balance.
• Flexible payment collection: Debit exact amounts as services or products are delivered.
• Automatic release: Any unused funds are automatically released after mandate expiry or when you manually release them.
• Webhook notifications: Receive real-time updates for authorisations, payments, and refunds.

Benefits

The following table describes the benefits of UPI Reserve Pay for merchants and customers:

Merchant benefits	Customer benefits
Reduce cart abandonment by minimising friction at checkout—customers don’t need to authenticate with a PIN for repeat payments.	Customers can keep money in their bank account earning interest instead of preloading wallets, or block funds via UPI credit card to avoid actual fund blocking.
Achieve high payment success rates and minimise failed payments (typically 10% of transactions).	Customers can authorise once and pay flexibly without multiple authentication steps for recurring payments.
Guarantee payment collection irrespective of the customer’s future account balance.	Customers can manage funds better by blocking specific limits with each merchant (for example, ₹10,000 on a food delivery app).
Enable flexible business models such as try and buy, flexible reservations, subscriptions, and usage-based billing.	Customers can enjoy flexible payment options across multiple use cases without the need to preload funds.

Use cases

The following table describes common scenarios where UPI Reserve Pay adds value:

Use case	Description
E-commerce “try and buy” or pay-on-delivery	Customers place an order and block funds (for example, ₹5,000) at checkout. When the product is delivered and confirmed, you debit only for the items the customer keeps. If the product is returned, the blocked funds are automatically released. This makes “try and buy” or “pay-on-delivery” safe for both you and your customers.
In-app wallets (without preloading)	Create instant wallets by asking customers to block a certain amount (for example, ₹2,000) in their bank account. Each time the customer purchases within the app, the amount is debited from the block. Unlike traditional wallets, customers don’t need to preload funds, and unused blocked funds are released automatically.
Smart margin trading and securities	Investors block a lump-sum amount (for example, ₹5,00,000) once in their account. Brokers can then debit smaller amounts as trades are executed or as shares are allotted. Investors don’t need to make multiple payments, and any unused funds remain in their account until the mandate expires.
Hotel and travel bookings	At the time of booking, customers block the estimated booking amount (for example, ₹10,000). The hotel or travel provider debits only the final bill at checkout or usage. If the customer cancels within the cancellation policy, the funds are automatically released.

How it works

UPI Reserve Pay follows a workflow where customers reserve funds once, and you can debit multiple times against the reserved amount.

Customer and merchant workflow

The following describes the end-to-end flow:

1. Customer reserves funds: The customer authorises a total estimated amount via UPI PIN or pre-authorisation. For example, a customer reserves ₹10,000 for multiple purchases.

2. You initiate multiple debits: You debit portions of the reserved amount for each product or service delivered:

   • ₹3,000 for Product 1
   • ₹3,500 for Product 2
   • ₹3,500 for Product or Service 3

3. No additional customer action: The customer doesn’t need to enter a UPI PIN again for each debit. Reserved funds automatically cover each transaction up to the pre-approved limit.

4. Guaranteed settlement: You receive funds instantly or at a guaranteed settlement schedule. The remaining reserved balance reduces automatically after each debit.

Common scenarios

UPI Reserve Pay is particularly useful for the following business models:

• Subscription services: Weekly or monthly deliveries
• Instalment payments: Partial payments for multiple products
• Pay-as-you-go models: Pre-reserved credit for multiple services like rides, utilities, or rentals

Integration workflow

The following table outlines the steps you need to follow to integrate UPI Reserve Pay:

1. Create Subscription (Mandate Setup)

   Initialise the subscription by passing the required customer and plan details through the Create Subscription API.

   Once successfully created, the subscription enters the INITIALIZED state, indicating that mandate setup has begun but customer approval is pending.

2. Raise Authorisation (Customer Approval)

   Trigger the authorisation request to block the mandate amount. The customer approves the blocked amount via UPI.

   • On successful authorisation, the subscription transitions to the ACTIVE state.
   • The SUBSCRIPTION_AUTH_STATUS webhook is triggered to notify you of the authorisation outcome.
3. Raise Charge (Debit Funds)

   Initiate a charge against the blocked funds (either full or partial amount).

   • On success, the SUBSCRIPTION_PAYMENT_SUCCESS webhook is triggered.
   • On failure, the SUBSCRIPTION_PAYMENT_FAILED webhook is triggered.
4. Get Mandate Details

   Use the Get Mandate Details API to retrieve:

   • All charges raised against the mandate
   • Remaining blocked amount
   • Current mandate limits and status
5. Refund Individual Charge

   Refund a specific charge using the Subscription Refund API.

   • Refund updates are communicated via the SUBSCRIPTION_REFUND_STATUS webhook.
6. Manage Mandate

   Use the Manage Mandate API to:

   • Release unused blocked funds
   • Cancel the mandate if no longer required

Supported apps and issuers

The following UPI apps and issuers support UPI Reserve Pay.

UPI apps

UPI App	Availability
PhonePe	Coming Soon
Google Pay	Coming Soon
Paytm	Available
NAVI	Available
BHIM	Available
BHIM PNB	Available
BoB ePay	Available
Indmoney	Available
CUB mBank	Available
Indsmart	Available

Credit card issuers

• ICICI (Sapphiro cards only)
• City Union Bank
• Punjab National Bank
• Bank of India
• Canara Bank
• Union Bank
• Indian Bank
• Axis Rupay

Credit line issuers

• City Union Bank
• Bank of Baroda
• Tamilnad Mercantile Bank
• South Indian Bank
• Union Bank

Savings account issuers

• Axis Bank
• ICICI Bank

Frequently asked questions

How do I enable UPI Reserve Pay for my account?

Contact your account manager or use the support form to enable UPI Reserve Pay for your account.

Can I debit multiple times from a single authorisation?

Yes, UPI Reserve Pay allows multiple debits against a single blocked amount until the limit is reached or the mandate expires.

What is the maximum amount limit and expiry time?

The maximum blockable amount is ₹10,000, and the mandate is valid for up to 90 days.

What happens if the customer cancels the transaction?

Any unused funds are automatically released back to the customer. You will be informed about the updated status of the mandate.

Can I refund a partial debit?

Yes, individual debits can be refunded using the Subscription Refund APIs. Refund status is communicated via webhooks. Note that the refunded amount does not increase the original limit; the refund is processed like a standard UPI refund.

How can I check the status of a subscription or payment?

Use the Get Mandate Details API to view all debits, remaining limits, and subscription status.

Which UPI apps are supported?

Currently supported apps include Paytm, Navi, BHIM, and BHIM SBI. Upcoming support includes PhonePe, BOB ePay, and GPay. More apps will be added soon—check with your account manager for the latest details.

Is there a limit on how much can be blocked?

The block amount is set during subscription creation and may vary by plan and merchant policy. For secondary markets, the limit can be higher. For most merchants, the current limit is ₹10,000 per month.

Can the mandate be irrevocable?

This depends on your merchant category. Please consult your account manager for details.

Can customers use RuPay Credit Cards via UPI Reserve Pay?

Yes, UPI Reserve Pay supports Savings Accounts, Credit Line on UPI, and RuPay Credit Cards.

What if authorisation fails due to insufficient funds?

You will receive a SUBSCRIPTION_PAYMENT_FAILED webhook. You can retry the debit if required.

How can the customer cancel the mandate?

Customers can cancel the mandate directly from their UPI app using the cancellation option.

What is the pricing for UPI Reserve Pay?

Please contact your account manager for pricing details.