The Reserve bank of India in its notification dated 21st August 2019 has permitted the processing of e-mandate on cards for recurring transactions (merchant payments) with Additional Factor of Authentication (AFA).
RBI received several requests from industry stakeholders on the matter.
This decision has been taken keeping in view the changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience. The e-mandate arrangement shall be only for recurring transactions and not for a one–time payment subject to maximum limit for a transaction INR 2000. No charges will belevied on the cardholder for availing the e-mandate facility.
Processing of e-mandate on cards has been permitted for recurring transactions (merchant payments) with AFA for following events, subject to conditions as given in Annex:
- e-mandate registration.
- Modification and revocation in existing e-mandate
- First transaction
- Simple / automatic subsequent successive transactions.
This Notification is applicable to all types of cards i.e. debit, credit, pre-paid instruments (PPI) including wallets. This facility may be reviewed, in due course, for extension to other digital modes of payments.
The notification has come into effect from 1st September 2019.
Click here to read the notification.
