RBI allows electronic mandates on cards for recurring transactions
MUMBAI: The Reserve Bank on Wednesday allowed the processing of the electronic mandate in credit and debit cards for recurring transactions (commercial payments) with a limit of 2,000 rupees.
the RBI has been receiving requests from industry stakeholders to allow processing of e-mandate on cards for recurring transactions with Additional Factor of Authentication (AFA) during e-mandate registration and first transaction.
"...it has been decided to permit processing of e-mandate on cards for recurring transactions (merchant payments) with AFA during e-mandate registration, modification and revocation, as also for the first transaction, and simple / automatic subsequent successive transactions," the RBI said in a circular.
This, the RBI said, has been done keeping in view the changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience.
the maximum permissible limit for a transaction under the e-mandate facility on cards would be Rs 2,000.
the RBI added that no charges should be levied or recovered from the cardholder for availing the e-mandate facility on cards for recurring transactions .
the direction is applicable for transactions performed using all types of cards – debit, credit and Prepaid Payment Instruments (PPIs), including wallets.