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In a boost to customer convenience, the Reserve Bank of India plans to enhance the limit for recurring payments to ₹15,000 per transaction from ₹5,000 . This means recurring payments up to ₹15,000 will not require an additional factor authentication such as an OTP.
“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,” said RBI Governor Shaktikanta Das on Wednesday in the monetary policy statement.
The move would further augment customer convenience and leverage the benefits available under the framework, he said, adding that necessary instructions to the effect will be issued shortly.
The current framework for on processing of e-mandate based recurring payments provides for an additional factor of authentication (AFA) during registration, sending a pre-debit notification, enabling subsequent recurring transactions to be executed without an AFA, and an easier avenue to withdraw such mandates.
Benefits of convenience, safety and security are available to the users, Das further said, adding that the system, too, also 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.
International merchants are also working on the framework but could take some time.
RBI Deputy Governor T Rabi Sankar said about 3,450 international merchants have registered.
“Some of them, for whom India business is not that significant will take a little longer to make the investments, to adjust their systems. Some major ones have communicated that to us, that they will adjust but will take a little bit longer,” he said at the post MPC press conference.
Experts said the higher limit of ₹15,000 will ensure ease for customers in case of high value recurring payments.
“The future transaction experience for them will be hassle-free as recurring payments of high values up to Rs 15,000 will not need an additional factor authentications (example OTPs), after registration. Additionally, e-mandate with the increased cap for recurring payments will become a standard for making many common payments from rent to receivables, various maintenance payments and possibly embed into emerging IOT functions,” said Muralidharan Srinivasan, Head of Payments, APMEA Region, FIS.
Card tokenisation
The RBI also expressed satisfaction over the progress made by industry for card tokenisation, the deadline for which is June 30.
“With about three weeks to go, the progress has been satisfactory. Over the last several months, our teams have been constantly discussing with all stakeholders to ensure that the process of tokenisation is implemented smoothly. The system is by and large prepared,” said RBI Deputy Governor T Rabi Sankar.
All the card networks are offering tokenisation, he said, adding that about 16 crore tokens had been created and this number would pick up, he further said.
“I really don’t think that there is any need to speculate on whether or not the timeline will be extended,” he said in response to a question.
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