India, Feb. 19 -- The Insurance Regulatory and Development Authority of India (IRDAI) has permitted insurers to block funds in a customer's bank account via UPI for premium payments for life and health insurance policies.

In a circular, the insurance regulator said that the payment option, called Bima-ASBA (Bima - Applications Supported by Blocked Amount), will be available from March 1, 2025.

"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," the circ...