NEWS
OTP not required for these kind of payments
Currently, OTP-based additional factor of authentication was needed when an auto payment via UPI exceeded the Rs 15,000 limit.
Currently, OTP-based additional factor of authentication was needed when an auto payment via UPI exceeded the Rs 15,000 limit.
No one-time password (OTP) based authentication will be needed for UPI recurring payments up to Rs 1 lakh for mutual fund, insurance and credit cards, the Reserve Bank of India (RBI) has said.
Currently, OTP-based AFA (additional factor of authentication) was needed when an auto payment via UPI exceeded the Rs 15,000 limit.
"The system has stabilised, but in categories such as subscription to mutual funds, payment of insurance premium and credit card bill payments, where the transaction sizes are more than Rs 15,000, a need to enhance the limit has been expressed as adoption has been lagging. It is, therefore, proposed to exempt the requirement of AFA for transactions up to Rs 1 lakh for the following categories, viz., subscription to mutual funds, payment of insurance premium and payments of credit card bills. The other existing requirements such as pre- and post-transaction notifications, opt-out facility for user, etc. shall continue to apply to these transactions. The revised circular will be issued shortly," the RBI said in a statement.
