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Changes in OTP rules for debit, credit cards; know new regulations before making payment
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“On a review of the implementation of the
The decision has been taken to improve customer convenience, he said, adding that the framework for processing e-mandate-based recurring payments was brought to provide customers with the benefits of convenience, safety and security.
An e-mandate on a debit or credit implies that the cardholder has issued a standing instruction to the merchant platform like a website or mobile application to deduct a certain amount of money for recurring transactions. This includes subscriptions on OTT platforms, bill payments, insurance premia, etc. Through an e-mandate, the cardholder gives the consent to merchant platforms to debit their credit or debit card for recurring payment requests that merchants may send.
Further, the central bank has also allowed credit card customers to link their cards with UPI (unified payments interface). “It is proposed to al-low linking of credit cards to UPI,” the RBI governor had said.
Das also noted that to start with Rupay credit cards issued by the RBI-promoted NPCI will be enabled with this facility, and the facility will be made available after system developments.
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