The latest decision will allow customers to approve recurring transactions without an OTP for payments below Rs 15,000. Customers, however, will have to approve recurring transactions with an OTP on payments more than Rs 15,000.
The RBI introduced new guidelines for recurring payments in October last year. The directive mandated an additional factor authentication (AFA) to approve recurring payments made through credit cards, debit cards or UPI.
According to RBI governor Shaktikanta Das, the move will provide customer convenience. Das 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 RBI has allowed now credit card customers to link their cards with UPI (unified payments interface). “It is proposed to allow linking of credit cards to UPI," Das said while announcing the regulatory moves, along with the bi-monthly policy review.
He also noted that to start with Rupay credit cards issued by the RBI-promoted National Payments Corporation of India (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.
