MUMBAI: The RBI has trebled the limit for allowing recurring payments through credit card e-mandates to Rs 15,000 per transaction. The banking regulator has also said that many foreign merchants are working on systems that will enable them to accept payments from Indian cards.
According to the RBI, over 6.2 crore mandates have been registered for tokenisation, which enables card payments without providing details for every transaction. This includes mandates from 3,450 international merchants.
“Requests have been received from stakeholders to increase the limit under the framework to facilitate payments of larger value – like subscriptions, insurance premia and education fees. To further augment customer convenience and leverage the benefits available, it is proposed to enhance the limit to Rs 15,000 from Rs 5,000 per recurring payment,” RBI governor Shaktikanta Das said.
According to RBI deputy governor T Rabi Sankar, some international merchants for whom India’s business is not that significant are taking a bit longer to adjust their systems. “Some major ones have conveyed to us that they will adjust but will take a little bit longer and until then there could be some issues,” said Sankar. He added that increasing the limit on recurring mandates to Rs 15,000 will address some problems. Sankar said that some of the collateral issues pertaining to tokenisation were being addressed and it was too early to speculate on extending the June 30 deadline.
According Razorpay SVP & head (payments product) Khilan Haria, RBI’s measures to enhance security on payment transactions have made India one of the safest digital payment markets in the world.