Now Automated bills can be paid via cards and wallets | Fusion - WeRIndia

Now, automated bills can be paid with your credit or debit cards or wallets with pre-transaction notifications.

The Reserve Bank of India (RBI) on Wednesday permitted cards and e-wallets for recurring merchant payments such as telephone bill payments on certain conditions.

A notification was issued by the RBI on August 21st stating that it has been decided to permit processing of e-mandate on cards for recurring transactions on certain conditions.

AFA (Additional Factor of Authentication) is required for these transactions. It is a security measure to make payments with card that requires OTP verification.

In order to process the recurring transactions electronically, the following conditions are essential:

• Cards shall be only for recurring transactions, but not for a ‘once-only’ payment.
• The maximum amount permissible under such arrangement is ₹2,000 per transaction.
• All instructions that are applicable to card transactions shall be applicable to these transactions.
• The payment system will come into effect from 1 September 2019.
• Those who want to opt for e-mandate facility on a card will have to undertake a one-time registration process with AFA validation by the issuer.
• The cardholder will have to choose a mode among the given modes given by the issuer like email, SMS etc. while registering e-mandate on the card. This is essential to receive the pre-transaction notification from the bank.
• The facility to change the mode of receiving pre-transaction notification shall also be provided to the cardholder.
• The pre-transaction notification shall be sent to cardholders to inform the details about the name of the merchant, transaction amount, date and time of debit.
• It also contains reference number of transaction and reason for debit. The cardholders can opt for their desired mode of payment provided by the banks to withdraw online when they receive the pre-transaction notification.
• RBI is mulling to extend other digital modes of payments in an appropriate time.

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