RBI monetary policy | E-mandates to get a boost: Limit for recurring transactions to be increased
This measure will further accelerate the use of e-mandates.
The RBI, while detailing its monetary policy outcome today, to render the payment system more convenient, has decided to increase the limit to Rs 1 lakh per transaction in respect of specified transactions. The RBI statement stated that e-mandates for making payments of a recurring nature have become popular among customers.
Under this framework, an additional factor of authentication (AFA) is currently required for recurring transactions exceeding Rs 15,000. It is now proposed to enhance this limit to Rs 1 lakh per transaction for recurring payments of mutual fund subscriptions, insurance premium subscriptions, and credit card repayments. This measure will further accelerate the use of e-mandates.
E-mandate is a digital payment method to virtually enable and authorise merchants to collect recurring payments through debit or credit cards.
Earlier in 2021, the e-mandate rules said that for transactions over Rs 5,000 through the e-mandate limit, you will need two-factor authentication for every recurring debit.
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