RBI Simplifies Auto Debit Rules for Transactions Up To Rs. 15,000

The OTP requirement for recurring payments up to Rs. 15,000 is eliminated by the new regulations. Additionally, transactions between Rs. 15,000 and Rs. 1 lakh involving insurance installments, mutual fund investments and credit card bill payments are not subject to further factor authentication.

The reports state that it guarantees that shared expenses, such as utility bills, EMIs and OTT platforms, may be paid without ongoing user involvement.

Also Read

Bajaj Pulsar NS400Z Launched with Powerful 350cc Engine: Specs, Price and Features

Watch: Noida Resident Buys 1 Crore Apartment On 22nd Floor; Express Deep Regret Later, Because…

Joe Jonas Makes His Relationship With Girlfriend Tatiana Gabriela Instagram-Official

After completing AFA, the updated framework allows users to sign up for a single use e-mandate. With permission, recurring debits of up to Rs. 15,000 may be processed smoothly without needing further OTP verification. However, transactions exceeding this limit will still need to be verified. This strengthens security for larger amounts.

The objective of the program is to make recurring payment mechanisms easier to use while improving user protection for card payments, prepaid payment instruments and UPI transactions, both at home and abroad.

The RBI has granted exceptions for important financial obligations. If an e-mandate is in place, recurring payments for insurance, mutual funds and credit card bills can be made up to Rs. 1 lakh without OTP verification. The policy reflects the increased value and importance of these outflows.