Digital Payments RBI Rules: Big decision of RBI on digital payment, auto-payment of up to Rs. 1,000 will be done without OTP…

Business Desk – Digital Payments RBI Rules: The Reserve Bank of India (RBI) has made important changes in the rules related to e-mandate to make digital payments even easier. Under the new rules, now it will not be necessary to enter OTP for every recurring payment up to Rs 15,000. This step has been taken to simplify payments like online subscription, electricity bill and EMI.

What are the new rules and the limit of Rs 15,000?

According to the new rules of RBI, customers will need Additional Factor Authentication (AFA), especially OTP, only at the time of initial registration of e-mandate. Once registered, auto-debit up to Rs 15,000 will be processed automatically.

However, if the transaction amount is more than Rs 15,000, OTP will be required for every transaction to ensure security. The special thing is that these rules will now apply to domestic transactions as well as cross-border transactions.

Rs 1 lakh discount for certain services

The Reserve Bank has significantly increased this limit for some important financial services. Auto-debits up to Rs 1 lakh for insurance premiums, mutual fund investments and credit card bill payments can now be processed without any additional verification.

This relief has been given in view of the generally large size of transactions in these categories. Apart from this, banks have been given strict instructions not to charge any additional charges from customers for e-mandate facility.

customer safety

To ensure the security of the system, RBI has made it mandatory to send an alert before deducting the money. It is now mandatory for banks to send SMS or email to the customer at least 24 hours before the money is deducted. This information should include information like the name of the merchant, the amount and date of the transaction.

Customers will now have complete control to pause, change or cancel their mandate at any time. Additionally, under the ‘Zero Liability Policy’, customers will not bear any financial responsibility for fraudulent transactions, provided they are reported timely.