RBI

Limit increased for contactless Card transactions & processing of e-mandates for recurring transactions

Limit increased for contactless Card transactions & processing of e-mandates for recurring transactions

RBI in 2015 and 2019 relaxed Additional Factor of Authentication (AFA) for Card transactions in Contactless mode and processing e-mandates / standing instructions on cards and Prepaid Payment Instruments (PPIs) for recurring transactions with values up to ₹ 2,000/-. Later it was extended to Unified Payments Interface (UPI) as well.

In view of the requests received and the protection available to the customers, the RBi in its Statement on Developmental and Regulatory Policies dated December 4, 2020 had stated that the aforesaid transaction limit will be increased.

Accordingly, the above limit for AFA relaxation has ben increased to ₹ 5,000/- per transaction, with effect from January 1, 2021 including discretion of cardholder to use contactless or contact mode of transaction.

Processing of recurring transactions (domestic or cross-border) using cards / PPIs / UPI under arrangements / practices not compliant with the aforesaid instructions shall not be continued beyond March 31, 2021

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