The Reserve Bank of India has allowed an immediate increase in the limit of e-mandate/standing instructions on credit/debit cards and Prepaid Payment Instruments (PPIs) from Rs 5,000 to Rs 15,000.

Before January 1, 2021, the limit was Rs 2,000. “Based on the implementation of the e-mandate framework and the review of security available to customers, it has been decided to increase the transaction limit from Rs 5,000 to Rs 15,000 and will be effective immediately,” the RBI said in a statement on June 16.

“Stakeholders have called for an increase in the limits under the framework to facilitate the payment of higher value expenses such as subscription fees, insurance fees, education fees, etc.,” RBI Governor Shaktikanta Das said recently.

“To further enhance customer convenience and take advantage of the benefits under the framework, it is proposed to increase the limit for each recurring payment from Rs 5,000 to Rs 15,000,” he added.

Under the current framework, processing recurring payments on cards based on electronic authorisation requires Additional Authentication Factors (AFA) during the registration process and a pre-debit notification. For convenience, subsequent recurring transactions will be executed without additional authentication factors.

According to the RBI, major banks are offering the facility. So far, transaction volumes have performed well, with more than 6.25 crore authorisations registered under the framework, including more than 3,400 international merchants.

Ramesh Narasimhan, the CEO of Worldline India, said that raising the e-mandate limit for recurring card payments from Rs 5,000 to Rs 15,000 is a welcome step as it will not benefit customers to set an order for multiple payments only. However, it will include more players in the insurance, education and credit sectors.