RBI permits processing of e-mandate on cards for recurring transactions

Aug 28, 2019 | by Avantis RegTech Legal Research Team


The Reserve Bank of India (RBI) on August 21, 2019, have decided to permit processing of e-mandate on cards for recurring transactions (merchant payments) with Additional Factor of Authentication (AFA) during e-mandate registration, modification and revocation for the first transaction, and simple or automatic subsequent successive transactions. 

RBI had received several requests from industry stakeholders to allow processing of e-mandate on cards for recurring transactions with AFA during e-mandate registration. Therefore, keeping in view the changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience, it has been decided to permit processing of e-mandate on cards for recurring transactions. It will be applicable for transactions performed using all types of cards like debit, credit and Prepaid Payment Instruments (PPIs), including wallets. The maximum permissible limit for a transaction under this arrangement shall be Rs. 2,000/-.  All other instructions related to card transactions shall be applicable on these e-mandate based recurring card transactions. No further charges shall be levied or recovered from the cardholder for availing the e-mandate facility on cards for recurring transactions.

[Notification No. DPSS.CO.PD.No.447/02.14.003/2019-20]


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