In the statement of developmental and Regulatory policies dated June 8, 2022, the Reserve Bank of India stated that the auto-transactions up to Rs 15,000 no longer require customers to authenticate such payments manually with a One Time Password (OTP). This is after the regulator received requests from several stakeholders to increase the limit under the framework to facilitate payments of larger value like subscriptions, insurance premiums, and education fees, among others.
To further augment customer convenience and leverage the benefits available under the framework, RBI said it is proposed to enhance the limit from Rs 5,000 to Rs 15,000 per recurring payment.
“The framework on the processing of e-mandate based recurring payments, inter-alia, provides for an Additional Factor of Authentication (AFA) during registration, sending a pre-debit notification, subsequent recurring transactions to be executed without AFA, and an easier avenue to withdraw such mandates. Benefits of convenience, safety, and security are available to the users. The system also benefits from users’ confidence” the statement said.
The central bank informs that the major banks are providing the facility and the transaction volumes are seeing good traction. To date, over 6.25 crore mandates have been registered under this framework, including for over 3,400 international merchants, it said. “Requests have been received from stakeholders to increase the limit under the framework to facilitate payments of larger value like subscriptions, insurance premia, education fees, 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” RBI said.
The statement further said that the necessary instructions in this regard will be issued shortly.