Money & Banking
Aims to ease bigger payments such as subscriptions, insurance premium, education fee
In a boost to customer convenience, the Reserve Bank of India plans to enhance the limit for recurring payments from ₹5,000 to ₹15,000 per transaction.
“Requests have been received from stakeholders to increase the limit under the framework to facilitate payments of larger value like subscriptions, insurance premia, education fee, etc,” RBI Governor Shaktikanta Das said on Wednesday in the monetary policy statement.
The move would augment customer convenience and leverage the benefits available under the framework, he said, adding that instructions to the effect will be issued shortly.
The framework for processing e-mandated recurring payments provides for an additional factor of authentication (AFA) during registration, sending a pre-debit notification, enabling subsequent recurring transactions without an AFA, and an easier avenue to withdraw such mandates.
Benefits of convenience, safety and security are available to users, Das said, adding that the system, too, benefits from users’ confidence.
Till date, over 6.25 crore mandates have been registered under this framework, including those for over 3,400 international merchants.