The RBI has notified that now it will allow processing of e-mandates on cards from September 1, 2019. Thus the users can now pay up to Rs 2000 without undergoing two-factor authentication process. The new rule will be applicable for payments via debit, credit, prepaid payment instruments (PPIs) and wallets. In its circular, the central bank also said that it has been receiving requests from industry stakeholders to allow processing of e-mandate on cards for recurring transactions with 'Additional Factor of Authentication' (AFA) during e-mandate registration and first transaction. It also mentioned that the rules may be reviewed in future and be extended to include other digital modes of payments. E-mandate allows banks, financial institutions to automatically debit recurring payments The E-mandate facility helps the users in recurring payment process after it allows its bank to automatically deduct the required amount without their intervention. According to the RBI circular, a cardholder will have to "undertake a one-time registration process, with AFA validation by the issuer" if they wish to opt for the services. According to RBI, e-mandate on a card for recurring transactions: will be registered only after a complete AFA validation along with the normal process required by the issuer. will be registered only after all required information including the validity period of the e-mandate and other audit trail related requirements is obtained by the bank. Apart from this, the circular also lays out that: The issuer will also have to provide for modification of the validity period of the e-mandate at…
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