Home/ Industry / Banking/  RBI allows e-mandates on cards, advances RTGS timings

MUMBAI : The Reserve Bank of India (RBI) on Wednesday permitted processing of e-mandate on credit and debit cards for recurring transactions (merchant payments) with a cap of 2,000.

RBI has been receiving requests from industry stakeholders to allow this with an additional factor of authentication during e-mandate registration and the first transaction.

“...it has been decided to permit processing of e-mandate on cards for recurring transactions (merchant payments) with AFA during e-mandate registration, modification and revocation, as also for the first transaction, and simple/automatic subsequent successive transactions," RBI said in a circular.

This, the central bank said, has been done keeping in view the changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience.

The RBI added that no charges should be levied or recovered from the cardholder for availing the e-mandate facility on cards for recurring transactions.

The direction is applicable for transactions performed using all types of cards—debit, credit and Prepaid Payment Instruments (PPIs), including wallets.

Separately, the central bank brought forward by an hour the time when the real time gross settlement (RTGS) system will become available.

Transfer of funds through the system will be available from 7am, instead of the present 8am, from August 26.

Earlier this month, RBI had decided to allow round-the-clock fund transfers through NEFT from December.

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Updated: 21 Aug 2019, 11:40 PM IST
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