Processing of e-mandates for Recurring Transactions
The Processing Recurring Payments issued by RBI as per the mandate the bank can only process auto debit transaction if they send a pre-debit notification to the customer at least 24 hours before payment. The current framework on processing E mandate based recurring payments requires for 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. For subsequent transactions with transaction values up to ₹5,000/- (AFA limit), prescription of AFA was waived.
Earlier Regulator received request from several Stakeholders to increase the limit under the framework to facilitate payments of larger value like insurance premium, Varity of subscriptions, educational fees etc. . On a review of 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 with immediate effect.
