Business

RBI allows e-mandate for cards

Tthe Reserve Bank of India (RBI) has decided to permit processing of e-mandate on cards for recurring transactions with additional factor authentication (AFA) during registration.

This will be applicable for transactions done using all types of cards — debit and credit cards and Prepaid Payment Instruments, including wallets. The maximum limit for such a transaction will be ₹2,000.

“While processing the first transaction in e-mandate-based recurring transaction series, AFA validation shall be performed.

“If the first transaction is being performed along with the registration of e-mandate, then AFA validation may be combined,” the RBI said.

The banking regulator further said that subsequent recurring transactions will be performed only for those cards which have been successfully registered and for which the first transaction was successfully authenticated and authorised.

“These subsequent transactions may be performed without AFA,” the RBI added.

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Printable version | May 14, 2021 8:52:00 PM | https://www.thehindu.com/business/rbi-allows-e-mandate-for-cards/article29214537.ece

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