The Reserve Bank of India (“RBI”), in a Circular dated 4th December, 2020 has issued information regarding “Processing of e-mandates for recurring transactions”.
Based on requests received from stakeholders and given the sufficient protection available to customers, it was announced in the Statement on Developmental and Regulatory Policies dated December 4, 2020 that the aforesaid transaction limit will be increased.
Accordingly, it has been decided to increase the above limit for AFA relaxation to ₹ 5,000/- per transaction, with effect from January 1, 2021.
Please note that processing of recurring transactions (domestic or cross-border) using cards / PPIs / UPI under arrangements / practices not compliant with the aforesaid instructions will not be continued beyond March 31, 2021.
Background:
RBI, had in a Circular dated 21st August, 2019 had granted relaxation in Additional Factor of Authentication (AFA) while processing e-mandates / standing instructions on cards and Prepaid Payment Instruments (PPIs) for recurring transactions with values up to ₹ 2,000/-, subject to conditions listed.
These instructions were later extended to Unified Payments Interface (UPI) as well.
Now, on the basis of the requests received from stakeholders, the transaction limit has been increased.
Source: Reserve Bank of India
