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Corporate Laws Central Ministry of Finance Payment and Settlement Systems Act, 2007

Processing of e-mandates for recurring transactions

12-Dec-2023 | RBI/2023-2024/88 CO.DPSS.POLC.No.S-882/02.14.003/2023-24

RBI has issued notification on Processing of e-mandates for recurring transactions in reference to Circular CO.DPSS.POLC.No.S-518/02.14.003/2022-23 dated June 16, 2022. RBI, in the e-mandate framework for recurring transactions, had prescribed an Additional Factor of Authentication (AFA) while processing the first transaction in case of e-mandates / standing instructions on cards, prepaid payment instruments, and Unified Payments Interface. For subsequent transactions with transaction values up to Rs. 15,000/- (AFA limit), prescription of AFA was waived. By virtue of this notification, the aforesaid AFA limit has been raised from Rs. 15,000/- to Rs. 100000 /- per transaction for the following categories: (a) subscription to mutual funds, (b) payment of insurance premiums, and (c) credit card bill payments

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