RBI’s governor has announced plans to raise UPI auto payment limits for specific transactions without Additional Factor Authentication (AFA). Payments up to Rs 1 lakh, including mutual fund subscriptions, insurance premiums, and credit card repayments, will no longer require OTP-based authentication. The current AFA trigger for UPI auto payments exceeding Rs 15,000 will be revised.
Introduced in August 2019, the e-mandate framework aims to balance digital transaction security with customer convenience. The current limit for e-mandates without AFA is ₹15,000 (last updated in June 2022). With 8.5 crore registered e-mandates, processing ₹2800 crores monthly, the system has stabilised. However, for categories like mutual fund subscriptions, insurance premiums, and credit card payments exceeding ₹15,000, there’s a need to enhance the limit due to slower adoption.
To address this, the proposal suggests exempting AFA for transactions up to ₹1 lakh in specified categories, maintaining pre- and post-transaction notifications, opt-out facilities, etc. The revised circular is expected soon.
To encourage the use of UPI for medical and educational services, it was also proposed to enhance the limit for payments to hospitals and educational institutions from ₹1 lakh to ₹5 lakh per transaction. Separate instructions will be issued shortly.
Advantages of UPI Auto Payment
Type Transactions can be paid through UPI
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