- The RBI (Reserve Bank of India) said it will allow processing of e-mandate on cards for recurring payments of less than 2,000 from September 1.
- Customers need not go through the two-factor authentication process every time for a similar transaction.
- The move was made keeping in view the changing payment needs and balancing safety of transactions with customer convenience.
- The RBI added that no charges should be levied or recovered from the cardholder for availing the e-mandate facility on cards for recurring transactions.
- The direction is applicable for transactions performed using all types of cards—debit, credit and Prepaid Payment Instruments (PPIs), including wallets.
- Separately, the central bank brought forward by an hour the time when the real time gross settlement (RTGS) system will become available.
- Transfer of funds through the system will be available from 7am, instead of the present 8am, from August 26.
- Earlier this month, RBI had decided to allow round-the-clock fund transfers through NEFT from December.
RBI Current Policy & Reserve Rates:
- Policy Repo Rate: 5.40%
- Reverse Repo Rate: 5.15%
- Marginal Standing Facility Rate: 5.65%
- Bank Rate: 5.65%
- CRR: 4%
- SLR: 18.75%
Important Possible questions based on above News :
- In context to recurring payments via PPIs, what will be the new timing of transfer of funds through RTGS facility? 7am to 8pm
- What is the threshold limit of recurring transactions on cards up to which no charge is levied as per the recent announcement by RBI? Rs. 2000