Changes to debit and credit card rules

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The Reserve Bank of India has announced an increase in the limit of electronic money orders to make recurring payments from Rs 5,000 to Rs 15,000. This raised limit has already come into force. Earlier, at the end of a consultative meeting of the Reserve Bank’s Committee on Monetary Policy, it was announced that the same rule would apply to debit cards and credit cards.

A statement issued on behalf of the Reserve Bank of India on June 1 said: “The increased electronic money order limit will come into effect immediately.” Among the recommended conditions regarding e-mandate, the first transaction made under e-mandate is an additional verification method required during the transaction or information on card status, prepaid payment tools and UPI services . Following this, transactions up to Rs. Five thousand are exempted from the additional verification activity.

E-Mandate is the static information system that the customer provides to business entities to perform a recurring transaction of a certain amount on a website or mobile application. This includes case bills and bill payments. This is the approval given by the customer or cardholder to withdraw money from their debit or credit card on the corresponding merchant platform.

It has been decided to increase the additional verification security from Rs 5,000 to Rs 15,000 per transaction, in view of the review action on electronically mandated procedures and the security available to customers. The RBI said the circular was issued under Section 10(2) of Section 18 of the Payments and Settlement Systems Act 2007.

During a meeting of the Reserve Bank’s monthly Policy Committee on June 8, RBI Governor Sakthikant Das announced the decision whether or not to implement the new decision.

On the same day, the Governor of the Reserve Bank said: “When paying subscriptions, insurance premiums, tuition fees or any other high value based on recurring payments, the limit per transaction is increased from Rs 5,000 to Rs 15,000.” Pranjal Karma, CEO of Phonology Ventures, said the Reserve Bank’s announcement would help take digital payment systems to the next level.

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