Reserve Bank of India
The Reserve Bank of India (RBI) has taken a big step to make digital payments easier. Under the new rules, there will be no need to enter OTP or password repeatedly for automatic payment up to Rs 15,000. This will especially facilitate regular payments like OTT subscription, electricity bill, mobile recharge. Not only this, if a customer’s debit or credit card changes, the e-mandate related to it will automatically be transferred to the new card. This decision is expected to provide relief to crores of users and the digital payment system will become stronger. Its effect will also be seen on SIP mandate. Let us tell you about it in detail.
What has changed in the new rules
Under the new rules of the Reserve Bank of India, now recurring payment through auto-debit i.e. e-mandate has become easier than before. E-mandate is a system in which the customer gives permission in advance to the bank, card or payment app to automatically deduct the amount like SIP, insurance premium, EMI, utility bill or OTT subscription on the fixed date.
Earlier in the system, it was necessary to give OTP every time on every payment above a certain limit. Many times, payment would fail due to delay in OTP, network problem or missed alert, leading to problems like service interruption, loss of investment or penalty.
OTP will not be used in payment of Rs 15 thousand
In the new rules, simplifying this process, recurring payments up to Rs 15,000 have been allowed to be processed automatically without OTP every time, provided the customer has already registered the mandate. Apart from this, this limit has been increased to Rs 1 lakh for categories like insurance premium, mutual fund and credit card bills.
This change will have a direct impact on those customers whose regular payments are required to be made on time. Now they will not need frequent authentication and the chances of payment failure will also be less, which will make it easier to maintain financial discipline.
