RBI allows recurring transactions upto Rs 2,000 on cards

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This has been done keeping in view the changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience. 

MUMBAI: The Reserve Bank of India will allow customers to make recurring payments of less than Rs.2000 without the two-factor authentication process by giving an e-mandate from September. 

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 (merchant payments)…” RBI said in a circular on Wednesday. 

The move has been made to make digital payments to the merchant, typically at Kirana and grocery stores where ticket sizes are small, more convenient. 

“This circular is applicable for transactions performed using all types of cards – debit, credit and Prepaid Payment Instruments (PPIs), including wallets,” the central bank said.

Courtesy: Economic Times