In a bid to make digital recurring payments effortless, the Reserve Bank of India (RBI) recently increase the minimum amount on e-mandates requiring One Time Passwords (OTPs) to Rs 15000, up from Rs 5000 previously.
The new limit has come into effect, making it simpler for customers to use e-mandates for payments towards loans or savings.
Reserve Bank of India Said :
RBI governor Shaktikanta Das recently point out that requests have receive from stakeholders to increase the limit under the framework to facilitate payments of larger value like subscriptions, insurance premia, education fees, etc.
According to Shaktikanta Das, the decision has taken to improve customer convenience.
Shaktikanta Das said that the framework for processing e-mandate-base recurring payments was introduce to provide customers with the benefits of convenience, safety and security.
The central bank has also allow credit card customers to link their cards with UPI (unified payments interface).
Shaktikanta Das Said :
Shaktikanta Das also note that to start with Rupay credit cards issue by the RBI-promote NPCI will be enable with this facility, and the facility will be made available after system developments.
Shaktikanta Das Said :
Shaktikanta Das adds that 594.63 crore transactions amounting to Rs 10.40 lakh crore were process through UPI in May 2022.