Debit, credit cards: No authentication on recurring payments up to ₹15,000 from today

The Reserve Bank of India (RBI) on Thursday announced that e-mandates for recurring transactions have risen from ₹5,000 to ₹15,000 with immediate effect. RBI had decided to enhance the limit of e-mandates on debit cards and credit cards on recurring transactions in the monetary policy outcome earlier this month.

In its statement today, RBI said, on a review of the implementation of the e-mandate framework and the protection available to customers, it has been decided to increase the aforesaid AFA limit from ₹5,000 to ₹15,000 per transaction.

"This circular is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), and shall come into effect immediately," RBI added today.

The e-mandate framework prescribed an Additional Factor of Authentication (AFA), inter alia, while processing the first transaction in case of e-mandates / standing instructions on cards, prepaid payment instruments, and Unified Payments Interface.

Earlier, on recurring payments valuing up to ₹5,000, AFA was waived.

On June 8, RBI in its development and regulatory policies report said, to further augment customer convenience and leverage the benefits available under the framework, it is proposed to enhance the limit from R 5,000 to ₹15,000 per recurring payment.

The framework offers benefits of convenience, safety, and security available to the users.

The framework for the 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.

Currently, major banks are providing the facility and the transaction volumes are seeing good traction. RBI's data showed that to date, over 6.25 crore mandates have been registered under this framework, including for over 3,400 international merchants.