CURRENT AFFAIRS

Detailed explanation-1: -UPSC Mains. Q. What is the new limit for auto-debit mandates done through cards and UPI (after June 2022)? Notes: The Reserve Bank of India increased the limit for auto-debit mandates done through cards and unified payment interface (UPI) to ₹15,000 from the earlier ₹5,000.

Detailed explanation-2: -The RBI has capped the auto debit option for transactions up to Rs 5,000 under the new rules. If the monthly auto-debit amount for any service/bill exceeds Rs 5,000, an additional factor of authentication (AFA) will be implemented, requiring the usage of a one-time password (OTP) each time payment is made.

Detailed explanation-3: -– This means the card-issuing banks are now required to send a pre-debit message to alert customers 24 hours before the payment due date. Then, the cardholders need to approve transactions that exceed INR 15,000 via OTP (one-time password) for a successful auto-debit payment.

Detailed explanation-4: -India: RBI Enhances Transaction Limits For Processing Of E-Mandates For Recurring Transactions: From INR 5,000/- To INR 15,000/-

Detailed explanation-5: -A Direct Debit mandate gives service providers written permission to take payments from their customers bank accounts. Payments cannot be collected until the mandate has been signed and agreed by the customer. Direct Debits are the safest and most trusted method of collecting recurring payments.