(Representational image) RBI hikes limit for OTP authentication of recurring payments to Rs 15,000
Photo : iStock
In a relief to those facing payment issues with the auto-debit facility of payments, the Reserve Bank of India (RBI) raised the limit for OTP authentication of such transactions to Rs 15,000 from Rs 5,000 currently.
“To further augment customer convenience and leverage the benefits available under the framework, it is proposed to enhance the limit from Rs 5,000 to Rs 15,000 per recurring payment. Necessary instructions will be issued shortly,” said RBI Governor Shaktikanta Das on Wednesday.
RBI Governor Shaktikanta Das announced the decision during the MPC policy meet address, stating the decision was taken in view of several requests received by the central bank to increase the limit
“Requests have been received from stakeholders to increase the limit under the framework to facilitate payments of larger value like subscriptions, insurance premia, education fee, etc,” he added.
Bank e-mandates for recurring payments require such requests to be approved by the user using OTP code for registration of such regular payments. This was put in place to increase security and allow the account holder better control over debit requests.
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, said RBI in a statement.
Benefits of convenience, safety and security are available to the users. The system also benefits from users’ confidence.
Major banks are providing the facility and the transaction volumes are seeing good traction. Till date, over 6.25 crore mandates have been registered under this framework, including for over 3,400 international merchants, as per RBI.
FAQs
In June 2022, the RBI raised this limit from INR 5,000 to INR 15,000 per transaction. The central bank has been tightening rules to make card transactions more safer. It also framed guidelines for card tokenisation in 2020 aiming to make card transactions more secure.
What is the limit of OTP transaction? ›
The Reserve Bank of India (RBI) on Friday said that no one-time password (OTP) based authentication will be required for payments made up to Rs 1 lakh.
What is the limit of recurring payments in RBI? ›
The Reserve Bank of India (RBI) on Friday said that it will shortly release a circular marking the upward revision in the limit of e-mandates for recurring online transactions without Additional Factor of Authentication (AFA) to Rs 1 lakh from the existing Rs 15,000 for subscription to mutual funds, payment of ...
What is the limit of OTP payment? ›
How much money can I send using the Instant Payment service? You may send up to HUF 10 million to outside the Bank, but OTP Bank also executes intrabank transfers of higher amounts within seconds, independent of limit, if they otherwise comply with the requirements of instant transfers.
What are the limits for a recurring payment e-mandate? ›
During the latest Monetary Policy Committee (MPC) meeting, the decision was upheld to maintain the key repo rate unchanged for the fifth consecutive time, as announced by Reserve Bank of India (RBI) Governor Shaktikanta Das.
What is OTP limit exceeded? ›
The default number of attempts to enter OTP is 3, which is not configurable. Upon breaching this limit, the user is NOT blocked, just that the transaction can't succeed anymore even if the user enters the correct OTP. The user must request and verify a NEW OTP, at this point, for the login to succeed.
How many times OTP can be applied? ›
One-time password (OTP) systems provide a mechanism for logging on to a network or service using a unique password that can only be used once, as the name suggests.
What are the changes for recurring payments in RBI? ›
We're working on updating your recurring payment per the new guidelines. The total amount you're charged won't change, and you'll be charged only for your usage. By September 30, 2021, your payment threshold will be lowered to ₹5,000. This may mean you pay more often because you'll reach your threshold more frequently.
Is RBI not allowing recurring payments? ›
Automatic payments in India will be limited to ₹5,000 INR due to Reserve Bank of India regulations. This requires us to set up an e-mandate for your card. All automatic payments for new accounts that use credit and debit cards are subject to these regulations. This may affect your payments on Google products.
What is the recurring payment law? ›
The law requires the clear and conspicuous display of service terms before purchase agreements are fulfilled; affirmative consent from consumers before any credit card charges are made; acknowledgment that includes the automatic renewal or continuous service offer terms, cancellation policy, and information regarding ...
One-time Password or OTP is a numerical code sent to your Registered Mobile Number (RMN) while you make online Credit Card transactions. The code comprises a four to six digit passcode randomly generated through automated software when your bank or Credit Card company receives the transaction request.
Is OTP required for all transactions? ›
Credit cards and debit cards, along with UPI, have a significant role in this initiative. Credit card transactions cannot be completed without an OTP. The bank sends a temporary OTP of four to six digits to your registered phone number to authenticate a credit card transaction.
Why do I get too much OTP? ›
Unauthorized Access Attempts: Receiving multiple OTPs from different sites could be an indication that someone is trying to gain unauthorized access to your accounts. Hackers or scammers may attempt to log in to your accounts using your phone number or email address and request OTPs to bypass the security measures [1].
What are the new RBI guidelines for UPI transactions? ›
How to Avoid UPI Frauds?
- Opting for a two-factor authentication.
- Changing passwords periodically.
- Opting for real-time transaction alerts.
- Refrain from sharing personal and banking details with anyone.
- Always remember bank representatives will not call you and ask you to pay for any service.
Mandate limit is the maximum amount an investor can invest through the mandate. Once this limit is reached, the mandate has to be renewed if the investor wants to continue investing through it.
What is the limit of UPI in RBI? ›
3. Transaction limit: The Central bank has substantially raised the transaction limit for UPI payments. In December, RBI Governor Shaktikanta Das announced another limit increase. The limit has now been increased from Rs 1 lakh to Rs 5 lakh.
Can you use OTP more than once? ›
Furthermore, OTPs can only be used on a single occasion. Once expired, they're useless, and the same OTP cannot be used to log in more than once even within its usable time window: this is known as “non-replay”.
What is the time limit for 6 digit OTP? ›
This shows that the 6-digit OTP system provides 120 times higher security than a 4-digit OTP system. The maximum time-out period observed for the 6-digit OTP generation system was 15 minutes i.e. the OTP has to be reset within 15 minutes before it can become susceptible to brute force attack.
Can I use OTP twice? ›
No, you cannot. Each OTP is designed for one-time use and provides security by being unique to each transaction. Hence, you cannot reuse it for multiple transactions.
