Reportedly any individual who makes regular payments to merchants through debit or credit cards now have the option to automate payments, similar to the option available while using net banking facilities. Meanwhile with the new facility, customers who conduct a similar transaction using their cards every month can now skip two-factor authentication process for that particular transaction.
Furthermore in a circular released on August 21, the Reserve Bank of india permitted processing of e-mandate on credit and debit cards for recurring transactions. However, the limit for these automated card transactions has been capped at Rs 2,000. Reportedly in the fresh process, customers are required to complete a one-time registration process to set the e-mandate. It could either be a pre-fixed amount or a variable amount. However, any change in the mandate will require re-authentication.
Moreover no additional charges will be applicable for using this new facility, which has been considered after RBI received several requests from industry stakeholders. Hence individuals should note that the feature will come in handy for those with recurring payment obligations. The RBI said in a circular "It has been decided to permit processing of e-mandate on cards for recurring transactions (merchant payments) with AFA during e-mandate registration, modification and revocation, as also for the first transaction and simple/automatic subsequent successive transactions". Perhaps the new move has been implemented in view of the changing payment needs and the requirement to balance the safety and security of card transactions with customer convenience.
