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To further the adoption of digital payments in a safe and secure manner, the RBI has issued a framework for processing of e-mandates on recurring online transactions. It has made AFA (Additional Factor of Authentication) mandatory for all recurring transactions below INR 5000 on debit cards, credit cards, even UPI and other Prepaid Payment Instruments (PPIs). All stakeholders are required to ensure full compliance with the framework by September 30th, 2021.
This RBI directive is applicable to all recurring payments which were earlier debited automatically from customers’ cards (credit/debit/prepaid) for mobile, utility, other recurring bills as well as subscription payments for different OTT streaming platforms. Razorpay believes this initiative by the RBI will bolster the safety and security of card transactions.
To help banks comply with the RBI directive and provide convenience to banks’ customers, Razorpay & Mastercard today partnered to launch MandateHQ, a new recurring payment interface, in accordance with RBI’s circular. Razorpay’s Mandate HQ is an API-based plug-n-play solution that reduces the go-live time for any card issuing bank that wishes to enable recurring payments for its customers. MandateHQ will also enable businesses,...