The Reserve Bank of India (RBI) on June 8 revised the limit for e-mandates on credit/debit cards and UPI from Rs 5,000 to Rs 15,000 to facilitate recurring payments and augment customer convenience.

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The latest decision will allow customers to approve recurring transactions/ auto debits without an OTP for payments of up to Rs 15,000. However, for transactions exceeding the limit of Rs 15,000 customers will need to authenticate payments with OTP.

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The decision was announced during the MPC policy meet address by RBI Governor Shaktikanta Das on June 8. He mentioned that the decision was taken in view of several requests from stakeholders to increase the limit under the framework to facilitate payments of larger values like subscriptions, insurance premiums, education fee, etc.

Bank e-mandates for recurring payments need users to approve transactions via OTP for registration of such regular payments. The RBI’s guidelines, that kicked in on October 1 last year, mandated customers to carry additional factor authentication (AFA) on all recurring payments made through credit cards, debit cards and UPI.

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The AFA was to be done as a one-time measure for payments of less than Rs 5,000, and all transactions above this limit had to be approved by a one-time password (OTP) by the user. This limit has now been raised to Rs 15,000. The AFA measure was introduced to increase security and provide the account holder with better control over debit requests.

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Since its introduction, there was large-scale disruption. According to RBI, over 62.5 million mandates have been registered under this framework so far, including for over 3,400 international merchants.

(Edited by : Shoma Bhattacharjee)

First Published:Jun 8, 2022 6:50 PM IST