Reetu | Dec 14, 2023 |
RBI enhances E-mandate Limit for Recurring Transactions to Rs. 100000
The Reserve Bank of India (RBI) has released a circular to revise the maximum amount that can be paid with e-mandates for recurring online transactions without the need for an Additional Factor of Authentication (AFA) to Rs. 1 lakh from the previous Rs. 15,000 for credit card bills, insurance premium payments, and mutual fund subscriptions.
The move is anticipated to promote transactions via the nation’s digital payment systems even further.
In order to strike a balance between the convenience of customers and the safety and security of digital transactions, the framework for processing e-mandates for recurring transactions was introduced in August 2019. With 8.5 crore e-mandates registered as of right now, almost Rs 2,800 crores worth of transactions being processed each month.
The system has stabilized, but there is a need to raise the limit because adoption has been slow in areas like mutual fund subscriptions, insurance premium payments, and credit card bill payments, where transaction volumes exceed Rs. 15,000.
A reference is invited to our circular CO.DPSS.POLC.No.S-518/02.14.003/2022-23 dated June 16, 2022 in terms of which relaxation in Additional Factor of Authentication (AFA) was permitted while processing e-mandates / standing instructions on cards, Prepaid Payment Instruments and Unified Payments Interface, for subsequent recurring transactions with values up to Rs.15,000, subject to conditions listed therein.
In this regard, as announced in the Statement on Developmental and Regulatory Policies dated December 08, 2023, it has been decided to increase the limit from Rs.15,000 to Rs.1,00,000 per transaction for the following categories: (a) subscription to mutual funds, (b) payment of insurance premiums, and (c) credit card bill payments.
This circular is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), and shall come into effect immediately.
For Official Circular Download PDF Given Below:
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