Debit/credit card: the electronic mandate limit for recurring transactions has increased significantly

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The Reserve Bank of India today announced an increase in the limit of Electronic Money Orders/Standing Instructions on Credit/Debit Cards and Prepaid Payment Instruments (PPI) for recurring transactions at 15,000, from 5000 now. The RBI will issue the necessary instructions shortly.

Under the current framework, processing recurring payments based on an electronic mandate on cards requires an additional authentication factor (AFA) during registration, by sending a pre-debit notification. Subsequent recurring transactions should be executed without an additional authentication factor for convenience.

According to RBI, major banks are providing the facility and transaction volumes are seeing good traction and so far more than 6.25 crore mandates have been registered under this framework, including for more than 3,400 international merchants.

“Requests have been received from stakeholders to increase the limit in the framework to facilitate higher value payments like subscriptions, insurance premiums, education costs, etc,” said today RBI Governor Shaktikanta Das.

“To further increase customer convenience and take advantage of the benefits available within the framework, it is proposed to increase the limit of 5,000 to 15,000 per recurring payment,” he added.

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