Mumbai: A month after the RBI’s new rules on the mandate for repetitive card payments begun, the bank accounts for more than 95% credit cards in the market according to the new system.
More than 20 lakh e-mandates have been registered by the card holder with a number of traders.
According to the source of the payment industry, banks whose credit cards are qualified for new payment mandates including SBI, AXIS Bank, HDFC Bank, Bank, American Express, Bank of India, Bank of Baroda, Bank RBL, HSBC, Bank RBL, HSBC, RBL , Bank and Mahindra Bank box.
Some banks have activated the mandate for debit cards and credit cards.
Automatic repetitive payments also require traders to be based on the new e-mandate framework.
The obedient business includes most of the OTT (over-the-top) streaming platforms, personal life & general insurance companies, Global It Giants like Google, Facebook, Microsoft and McAfee, as well as several EDTECH companies.
Interestingly, Indian card holders who have registered with foreign service providers, has a gateway payment abroad, not subject to new rules.
This is because the RBI does not have jurisdiction to impose the second factor authentication in the market.
It’s up to the customer to deactivate international transactions on their cards.
What has facilitated the on-boarding board trader is a solution such as the Hub developed by Billdesk and Mandate HQ developed by Razorpay.
However, several domestic banks such as Bank Canara Bank & Punjab National Bank and Standard Chartered Bank until last week in the process of making changes in systems needed.
According to sources, repetitive card-based transactions are 2.5% in terms of transactions and 1.5% in terms of the total value of card payments made in the country.
On average, around 75% of domestic repetitive transactions are value up to RS 5,000.
The appropriate number for repeated cross-border transactions is around 85%.