New Delhi: The Reserve Bank of India (RBI) recently upped the minimum amount on e-mandates needing One Time Passwords (OTPs) to Rs 15000, up from Rs 5000 earlier. The new limit has been implemented, making it easier for consumers to use e-mandates for loans or savings payments.
‘It has been decided to increase the limit from Rs 5,000 to Rs 15,000 per transaction and shall come into effect immediately,’ the RBI stated in a June 16 announcement. RBI governor Shaktikanta Das recently stated that proposals have been made from stakeholders to expand the framework’s ceiling in order to permit larger-value payments such as subscriptions, insurance premia, college fees, and so on.
According to Das, the decision was made to promote consumer convenience. He stated that the framework for processing e-mandate-based recurring payments was created to give clients the benefits of ease, safety, and security. Meanwhile, the central bank has permitted credit card holders to link their cards to UPI (unified payments interface). ‘ It is suggested to allow credit card connection to UPI,’ the RBI governor stated when announcing the regulatory changes and the bi-monthly policy review.
Das further stated that, for the time being, only Rupay credit cards issued by the RBI-sponsored NPCI will be equipped with this feature, and that it will be made available following system enhancements. ‘ With over 26 crore unique users and 5 crore merchants onboarded on the platform, he said, adding that 594.63 crore transactions of Rs 10.40 lakh crore were conducted over UPI in May 2022.