RBI hikes OTP mandate limit for auto-debit recurring payments upto Rs 15,000
Highlights
- RBI had in 2019 first introduced the rule for processing recurring payments
- The latest decision means that customers will no longer need to authenticate payments manually
- The RBI decided to increase the limit after stakeholders urged central bank to revise the cap
RBI Policy: The Reserve Bank of India (RBI) has increased the limit for auto-debit mandates for making recurring payments from Rs 5,000 to Rs 15,000. This means that customers will no longer need to authenticate such payments manually by entering a one time password.
RBI Governor Shaktikanta Das on Wednesday said that the decision is aimed to further augment customer convenience and leverage the benefits available under the framework.
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RBI had in 2019 first introduced the rule for processing recurring payments. Banks were allowed to process auto-debit payments only if they send a prior notification to customers. Customers are then required to authenticate the transaction manually with an OTP.
According to the central bank, over 6.25 crore mandates have been registered under the existing framework till date. This includes over 3,400 international merchants.
The RBI decided to increase the limit after stakeholders urged the bank to revise the cap to facilitate payments of larger value.
