The Reserve Bank of India (“RBI”) vide its circulars dated August 21, 2019, January 10, 2020, December 4, 2020 and March 31, 2021 specified the framework for registering and processing of e-mandates (collectively the “E-mandate Framework”).
The E-mandate Framework prescribed an additional factor of authentication (“AFA”), inter-alia, while processing the first transaction in case of e-mandates/ standing instructions on cards, prepaid payment instruments and unified payments interface. For subsequent transactions with transaction values up to Rs. 5,000/- (AFA limit), prescription of AFA was waived.
On a review of implementation of the E-mandate Framework and the protection available to customers, RBI has now vide its circular dated June 16, 2022 (“Circular”) decided to increase the aforesaid AFA limit from Rs. 5,000/- to Rs. 15,000/- per transaction.
The Circular will come into effect immediately.
Please find a copy of the Circular, here and a copy of the E-mandate Framework (i.e. the August 21, 2019 circular, here, the January 10, 2020 circular, here, the December 4, 2020 circular, here and the March 31, 2021 circular, here).
This update has been contributed by Swaraj Narula (Senior Assoicate).
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