RBI revises AFA limit to Rs.15000 per transaction



Quick Summary
The Reserve Bank of India (RBI) has announced an increase in the limit for processing e-mandates for recurring transactions. The Additional Factor of Authentication (AFA) limit has been raised from £5,000 to £15,000 per transaction. This change aims to enhance customer protection while streamlining the process for higher-value recurring payments.

Processing of e-mandates for recurring transactions

RBI/2022-23/73
CO.DPSS.POLC.No.S-518/02.14.003/2022-23

June 16, 2022

The Chairman / Managing Director / Chief Executive Officer
All Scheduled Commercial Banks, including Regional Rural Banks /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks / Payments Banks /
Small Finance Banks / Local Area Banks /
Non-bank Prepaid Payment Instrument Issuers / Authorised Card Payment Networks /
National Payments Corporation of India

RBI Raises E-Mandate Limit to £15,000 Per Transaction

Madam / Dear Sir,

Processing of e-mandates for recurring transactions

A reference is invited to our circulars DPSS.CO.PD.No.447/02.14.003/2019-20 dated August 21, 2019, DPSS.CO.PD No.1324/02.23.001/2019-20 dated January 10, 2020, DPSS.CO.PD No.754/02.14.003/2020-21 dated December 04, 2020 and CO.DPSS.POLC.No.S34/02-14-003/2020-2021 dated March 31, 2021 (collectively referred to as "e-mandate framework"). The e-mandate framework prescribed an Additional Factor of Authentication (AFA), inter alia, while processing the first transaction in case of e-mandates / standing instructions on cards, prepaid payment instruments and Unified Payments Interface. For subsequent transactions with transaction values up to ₹5,000/- (AFA limit), prescription of AFA was waived.

2. On a review of implementation of the e-mandate framework and the protection available to customers, it has been decided to increase the aforesaid AFA limit from ₹5,000/- to ₹15,000/- per transaction.

3. This circular is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), and shall come into effect immediately.

Yours faithfully,

(P. Vasudevan)
Chief General Manager

FAQ :

The RBI has revised the Additional Factor of Authentication (AFA) limit for processing e-mandates for recurring transactions.

The new AFA limit has been increased from £5,000 to £15,000 per transaction.

This change comes into effect immediately.

AFA stands for Additional Factor of Authentication.

This applies to processing e-mandates for recurring transactions on cards, prepaid payment instruments, and Unified Payments Interface.




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