RBI: Big news for common people. The Reserve Bank of India (RBI) has introduced important updates to its e-mandate regulations to make digital payments easier. According to the new guidelines, automatic payments up to Rs 15,000, including subscriptions, EMIs, and bill payments, will no longer need an OTP (One-Time Password) for each transaction.
What is the new rule?
Users will now only have to enter an OTP or another form of authentication once when they set up an e-mandate. After that, all recurring payments up to Rs 15,000 will be automatically deducted without needing to enter an OTP each time. However, for transactions exceeding Rs 15,000, an OTP will still be necessary.
To whom will this rule apply?
This new feature will be applicable to all payments that are automatically deducted on a monthly basis or at a specified time, such as OTT and app subscriptions, utility bills like electricity and water, and EMI payments, among others. This change aims to enhance the user experience by removing the inconvenience of repeatedly entering OTPs.
Exemption up to Rs 1 lakh in certain cases
The RBI has raised the limits for specific essential payments. Automatic payments up to ₹1 lakh, including insurance premiums, mutual fund SIPs, and credit card bill payments, can now be processed without an OTP if the e-mandate is established.
Users will get more control
With the new regulations, users will have increased control.
You will receive a notification 24 hours before the payment.
If desired, you can cancel the payment in advance.
You have the option to modify, pause, or terminate the mandate at any time.
Safety was also taken into consideration
The RBI has also enhanced its security protocols. In cases of incorrect or fraudulent transactions, customers will enjoy zero liability, meaning they will not be held accountable for any losses if reported in a timely manner.
Banks cannot charge extra
The RBI has made it clear that banks or payment service providers are not allowed to impose any additional fees on customers for the e-mandate service.
