**Summary:**
This Reserve Bank of India (RBI) circular, DPSS.CO.PD No.754/02.14.003/2020-21, dated December 4, 2020, addresses the processing of e-mandates for recurring transactions. It revises the Additional Factor of Authentication (AFA) relaxation limit for such transactions. Effective January 1, 2021, the AFA relaxation limit is increased from ₹2,000 to ₹5,000 per transaction. This applies to transactions processed using cards, Prepaid Payment Instruments (PPIs), and Unified Payments Interface (UPI). The circular mandates that all recurring transactions (domestic or cross-border) using cards, PPIs, and UPI must comply with these instructions by March 31, 2021. Non-compliant arrangements and practices must cease beyond this date. This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007). Stakeholders may direct inquiries to the Department of Payment and Settlement Systems, Central Office, RBI at cgmdpsscorbi.org.in, or by phone at 91-22-2264-4995, or fax at 91-22-2269-1557. The address for the central office is 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai - 400001.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system.
Regional Rural Banks: Scheduled Commercial Banks in India with a regional focus.
Urban Cooperative Banks: Cooperative banks operating in urban and semi-urban areas of India.
State Cooperative Banks: Cooperative banks operating at the state level in India.
District Central Cooperative Banks: Cooperative banks operating at the district level in India.
Payments Banks: A type of bank in India that can accept deposits and provide payment services.
Small Finance Banks: A type of bank in India focused on providing financial services to underserved populations.
Unified Payments Interface: A real-time payment system in India that facilitates inter-bank transactions.
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2020-21/74
DPSS.CO.PD No.754/02.14.003/2020-21 December 04, 2020
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
Madam / Dear Sir,
Processing of e-mandates for recurring transactions
Please refer to our circular DPSS.CO.PD.No.447/02.14.003/2019-20 dated August 21, 2019 vide
which relaxation in Additional Factor of Authentication (AFA) was permitted while processing e-
mandates / standing instructions on cards and Prepaid Payment Instruments (PPIs) for recurring
transactions with values up to ₹ 2,000/-, subject to conditions listed therein. These instructions
were later extended to Unified Payments Interface (UPI) as well.
2. Based on requests received from stakeholders and given the sufficient protection available
to customers, it was announced in the Statement on Developmental and Regulatory Policies
dated December 4, 2020 that the aforesaid transaction limit will be increased. Accordingly, it has
been decided to increase the above limit for AFA relaxation to ₹ 5,000/- per transaction, with effect
from January 1, 2021.
3. Processing of recurring transactions (domestic or cross-border) using cards / PPIs / UPI
under arrangements / practices not compliant with the aforesaid instructions shall not be
continued beyond March 31, 2021.
भुगतान और िनपटान �णाली िवभाग, क��ीय कायार्लय, 14वीमंिजल, क��ीयकायार्लयभवन,शहीदभगत�संहमागर्, फोट,र् मुम्बई - 400001
फोनTel: (91-22) 2264 4995; फैक् सFax: (91-22) 22691557; ई-मेलe-mail : cgmdpssco@rbi.org.in
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai -
400001
�हदं ी आसान ह,ै इसका �योग बढ़ाइए4. This directive is issued under Section 10 (2) read with Section 18 of Payment and
Settlement Systems Act, 2007 (Act 51 of 2007).
Yours faithfully,
(P. Vasudevan)
Chief General Manager