Published On: 24 Jun 2022
The Reserve Bank of India (RBI) recently made amendments to the rules for credit and debit card payments in an effort to make recurring digital payments more seamless. As per the new update, the minimum amount limit for credit cards as well as debit cards has been increased. While earlier, e-mandates and standing instructions were required for amounts exceeding ₹5,000, as per the new rules, the limit has been extended to ₹15,000 for credit and debit cards.
In accordance with the new rules, for any recurring payments for loans, recurring deposits or general savings that are below ₹15,000, customers will not have to submit a one-time password (OTP) or Additional Factor of Authentication (AFA) for payments made via a debit card or credit card.
In a press release dated June 8, RBI had informed about the upcoming changes in e-mandates for recurring payments. “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 ₹5,000 to ₹15,000 per recurring payment. Necessary instructions will be issued shortly”, the notification said.
Finally, on June 16, the rules came into effect. As per RBI’s official notification on June 16, authorities stated “On a review of implementation of the e-mandate framework and the protection available to customers, it has been decided to increase the AFA limit from ₹5,000/- to ₹15,000/- per transaction, effective immediately”
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