By Hariprasad Radhakrishnan and Urvashi Valecha
Rupay is expected to roll out recurring payments without the two-factor authentication for transactions of less than Rs 2,000 early next year, National Payments Corporation of India (NPCI) chief operating officer Praveena Rai said on Friday. The move comes in response to a Reserve Bank of India (RBI) notification in August.
Rai said the technology work is going on and the entire ecosystem is gearing up for the shift. She also hinted that a similar notification is expected for the Unified Payments Interface (UPI), the payments application under the NPCI.
In August, the central bank had issued a notification allowing automatic recurring transactions on cards for all subsequent transactions after the first instance, which would still require additional factor authentication (AFA).
The notification, which came into effect from September 1, would be applicable to all types of cards – debit, credit and prepaid payment instruments (PPIs), including wallets. No charges are to be levied on the cardholder for availing of the e-mandate facility, the RBI had said.
“The debits can happen directly (without two-factor authentication) from an account, if that’s a payment account that you are comfortable with, so it opens that kind of convenience for your consumers,” she told FE on the sidelines of the Indian Fintech Awards 2019.