RBI raises OTP mandate limit for auto-debit recurring payments up to Rs 15,000
Highlight
- RBI first introduced rules for processing recurring payments in 2019
- The latest decision means customers will no longer need to manually authenticate payments
- RBI decided to increase the limit after stakeholders urged the central bank to revise the cap
RBI Policy: The Reserve Bank of India (RBI) has increased the limit of auto-debit mandate for making recurring payments from Rs 5,000 to Rs 15,000. This means customers will no longer need to manually authenticate such payments by entering a one time password.
RBI Governor Shaktikanta Das on Wednesday said the decision is aimed at further enhancing the convenience of customers and availing benefits available under the framework.
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RBI had first introduced rules for processing recurring payments in 2019. Banks were allowed to process auto-debit payments only if they sent prior intimation to customers. Then customers need to authenticate the transaction manually with an OTP.
According to the central bank, over 6.25 crore mandates have been registered so far under the existing framework. This includes over 3,400 international traders.
The RBI decided to increase the limit after stakeholders urged the bank to revise the cap to facilitate higher value payments.