New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    RBI has increased the limit for e-mandates for recurring

    payments to Rs 15,000 from___________?
    A 4,000 Correct Answer Incorrect Answer
    B 5,000 Correct Answer Incorrect Answer
    C 6,000 Correct Answer Incorrect Answer
    D 7,000 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    In its bi-monthly “Statement on Developmental and Regulatory Policies” the Reserve Bank of India (RBI) has increased the limit for e-mandates for recurring payments to Rs 15,000 from Rs 5,000. The framework on processing of e-mandate based recurring payments, inter-alia, provides for an Additional Factor of Authentication (AFA) during registration, sending a pre-debit notification, subsequent recurring transactions to be executed without AFA, and an easier avenue to withdraw such mandates. Benefits to customers: Increasing cap on e-mandate for card recurring payment will benefit customers. The maximum limit for without-AFA e-mandates was Rs 5000 earlier. This meant that for subscriptions, a recurring payment up to Rs 5000 could be done without any Additional Factor of Authentication (AFA) like OTPs. For payments beyond that, the customer had to enter the OTP. But with the limit now extended to Rs 15000, the process of subscription payments will become more hassle-free and convenient.

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