Reserve Bank of India has given the go ahead for the e-mandate system on debit,credit or other prepaid cards for recurring payments,and this is official from September 1, 2019. This means we will no longer have toundergo the tedious two factor authentication process every time we carry out a regular transaction at our usual merchant.
RBI Allows e-Mandate For Recurring Transactions :-
The Reserve Bank of India has issued a notification, in which it states that it has finally allowed the processing of e-mandates on debit cards, credit cards and prepaid cards for recurring transactions.
The process of e-mandate will be in place from September 1, 2019.
This new development now eliminates the previous measures of the requirement of AFA (Additional Factor of Authentication) that were demanded by the RBI for safety and security purposes.
The RBI has agreed to the requests of industry stakeholders of allowing the process of e-mandates to simplify the recurring transactions.
The notice issued by the RBI says, “Keeping in view the changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience, it has been decided to permit processing of e-mandate on cards for recurring transactions (merchant payments)…”
RBI Issued Guidelines Regarding e-Mandate :-
However, there is a set of instructions that the RBI has put in place to be followed, which can be seen below…..Read more>>