“On the review of the implementation of the
The decision was made to improve customer convenience, he said, adding that the electronic mandate-based recurring payment processing framework was put in place to provide customers with the benefits of convenience, safety and security.
An e-mandate on a debit or credit implies that the cardholder has given a standing instruction to the merchant platform such as a website or mobile app to deduct a certain amount of money for recurring transactions. This includes subscriptions on OTT platforms, bill payments, insurance premiums, etc. Through an e-mandate, the cardholder gives consent to merchant platforms to charge their credit or debit card for recurring payment requests that merchants may send.
In addition, the central bank has also allowed credit card customers to link their cards to the UPI (unified payment interface). “It is proposed to allow credit card linking at UPI,” the RBI Governor had said.
Das also noted that to start with, Rupay credit cards issued by the RBI-promoted NPCI will be activated with this feature, and the feature will be made available after system developments.