Processing of e-mandates for recurring transactions

Current Context: The Reserve Bank of India (RBI) has established a framework for processing e-mandates for recurring online transactions. This framework applies to transactions made using cards, wallets, and the Unified Payments Interface (UPI).

• Here are some key points:
• Additional Factor of Authentication (AFA): During the registration and the first transaction, AFA is required to ensure security. Subsequent transactions up to a limit of ₹5,000 do not require AFA.
• Pre-transaction Notification: Customers receive a notification before each transaction, allowing them to cancel if necessary.
• Transaction Limit: The maximum permissible limit for a transaction under this e-mandate is ₹5,000.
• Customer Convenience: The framework aims to balance safety and convenience, protecting customers from fraudulent transactions while making recurring payments easier.
• This framework ensures that recurring transactions are secure and convenient for customers.

Question:

1 What is the maximum transaction limit set by the RBI under the e-mandate framework for recurring transactions?

• A) ₹1,000
• B) ₹2,500
• C) ₹5,000
• D) ₹10,000

Answer: C) The RBI has set the maximum permissible limit for a transaction under the e-mandate framework at ₹5,000. This limit applies to recurring transactions where Additional Factor of Authentication (AFA) is not required for each subsequent transaction.