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OTP rule changes from today! Debit, credit card users must know new regulations before making payment
The RBI recently increased the minimum amount on e-mandates requiring One Time Passwords (OTPs) to Rs 15000, up from Rs 5000, previously.
Highlights
- The new limit has now come into effect.
- Das pointed out that requests have been received from stakeholders to increase the limit.
- According to Das, the decision has been taken to improve customer convenience.
New Delhi: In a bid to make digital recurring payments effortless, the Reserve Bank of India (RBI) recently increased the minimum amount on e-mandates requiring One Time Passwords (OTPs) to Rs 15000, up from Rs 5000 previously. The new limit has been come into effect, making it simpler for customers to use e-mandates for payments towards loans or savings.
“On a review of the implementation of the e-mandate framework and the protection available to customers, it has been decided to increase the limit from Rs 5,000 to Rs 15,000 per transaction and shall come into effect immediately," the RBI said in a notification on June 16. (ALSO READ: New credit card, debit card rules for online payments from July 1: Know what is going to change)
RBI governor Shaktikanta Das recently pointed out that requests have been received from stakeholders to increase the limit under the framework to facilitate payments of larger value like subscriptions, insurance premia, education fees, etc. (ALSO READ: Ashneer Grover all set to be back in business, eyes $300 million funding)
According to Das, the decision has been taken to improve customer convenience. He said that the framework for processing e-mandate-based recurring payments was introduced to provide customers with the benefits of convenience, safety and security.
Meanwhile, the central bank has also allowed credit card customers to link their cards with UPI (unified payments interface). “It is proposed to allow linking of credit cards to UPI," the RBI governor had said while announcing the regulatory moves, along with the bi-monthly policy review.
Das also noted that to start with Rupay credit cards issued by the RBI-promoted NPCI will be enabled with this facility, and the facility will be made available after system developments.
“UPI has become the most inclusive mode of payment in India, with over 26 crore unique users and 5 crore merchants onboarded on the platform,” he said, adding that 594.63 crore transactions amounting to Rs 10.40 lakh crore were processed through UPI in May 2022.