The decision was announced by RBI governor Shaktikanta Das during the bi-monthly monetary policy committee meeting on the day.
RBI MPC Decisions: The Reserve Bank of India on Wednesday, June 8, increased the limit on the mandates on recurring payments via cards, both credit and debit from Rs 5,000 to Rs 15,000 per transaction. The decision was announced by RBI governor Shaktikanta Das during the bi-monthly monetary policy committee meeting on the day.
“The framework for processing of e-mandate based recurring payments was introduced by the Reserve Bank keeping in mind the benefits of convenience, safety, and security to the users, Das said in his statement on the day. “Under this framework, over 6.25 crore mandates have been registered in favour of large number of domestic, and over 3,400 international merchants,” he added.
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“To further facilitate recurring payments like subscriptions, insurance premiums, education fees of larger value under the framework, the limit is being enhanced from Rs 5,000 to Rs 15,000 per transaction,” said the RBI governor. “This will further leverage the benefits available under the framework and augment customer convenience,” Das added.
The framework on processing of e-mandate based recurring payments, inter-alia, provides for an Additional Factor of Authentication (AFA) during registration, sending a pre-debit notification, subsequent recurring transactions to be executed without AFA, and an easier avenue to withdraw such mandates, the RBI later said in a statement. “Benefits of convenience, safety and security are available to the users. The system also benefits from users’ confidence. Major banks are providing the facility and the transaction volumes are seeing good traction,” it added.
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“Requests have been received from stakeholders to increase the limit under the framework to facilitate payments of larger value like subscriptions, insurance premia, education fee, etc. To further augment customer convenience and leverage the benefits available under the framework, it is proposed to enhance the limit from Rs 5,000 to Rs 15,000 per recurring payment. Necessary instructions will be issued shortly,” read the statement from the RBI.
