RBI increases e-mandate limit for recurring payments via credit, debit cards to Rs 15,000
Synopsis
"To encourage larger-value recurring payments such as subscriptions, insurance premiums, and school fees within the framework, the cap is being raised from Rs 5,000 to Rs 15,000 per transaction," said the governor of the RBI.
The Reserve Bank of India raised the ceiling on mandates for recurring payments using credit and debit cards from Rs 5,000 to Rs 15,000 per transaction on Wednesday, June 8. On the same day, RBI Governor Shaktikanta Das announced the decision during the bi-monthly monetary policy committee meeting.
"The Reserve Bank created the framework for processing of e-mandate based recurring payments with the benefits of simplicity, safety, and security to users," Das said in a statement on the day. "Under this framework, over 6.25 crore mandates in favour of a significant number of local and over 3,400 overseas merchants have been registered," he added.
"To encourage larger-value recurring payments such as subscriptions, insurance premiums, and school fees within the framework, the cap is being raised from Rs 5,000 to Rs 15,000 per transaction," said the governor of the RBI. "This will further utilise the framework's benefits and improve client convenience," Das elaborated.
Also Read | RBI raises repo rate by 50 bps to 4.90%, second hike in 2 months
The framework for processing e-mandate-based recurring payments includes, among other things, an Additional Factor of Authentication (AFA) during registration, sending a pre-debit notification, subsequent recurring transactions to be executed without AFA, and an easier way to withdraw such mandates, according to a statement issued later by the RBI.
According to the statement, demands have been made from stakeholders to extend the framework's limit to permit payments of greater value such as subscriptions, insurance premia, university fees, and so on. The RBI stated that "necessary instructions would be released shortly."
Also Read | Explained: How RBI's rate hike will impact you?
RBI Governor Shaktikanta Das announced on Wednesday that the Monetary Policy Committee (MPC) agreed to raise the repo rate by 50 basis points to 4.90 per cent at its meeting from June 6 to June 8. As a result, Das increased the Standing Deposit Facility (SDF) to 4.65 percent and the Marginal Standing Facility (MSF) and bank rate to 5.15 per cent.
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.