RBI raises e-mandate limit for transactions up to Rs 15,000
The Reserve Bank of India has increased the limit of e-mandates for transactions up to Rs 15,000. The RBI raised the Additional Factor of Authentication (AFA) limit from Rs 5,000 to Rs 15,000 per transaction on cards, Prepaid Payment Instruments (PPIs) and UPI for recurring transactions, as per the official release said.
It means that for a payment of Rs 15,000 per transaction, no further authentication is required.
“On a review of implementation of the e-mandate framework and the protection available to customers, it has been decided to increase the…AFA limit from Rs 5,000 to Rs 15,000 per transaction,” the Reserve Bank said in a circular.
The release further said, “This circular is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), and shall come into effect immediately.”
Over the last decade, the RBI has implemented many safety and security measures for card payments, including the requirement of AFA, particularly for “card-not-present” transactions.
Under e-mandate, an individual can give standing instruction to the bank to debit a specific amount automatically on recurring basis.
(With the inputs of PTI)