Page 54 - Banking Finance May 2021

RBI CIRCULAR

3. Considering the progress made by PBs in furthering 3. Any further delay in ensuring complete adherence to
financial inclusion and with the objective of giving more the framework beyond the extended timeline will
flexibility to the PBs, it has been decided to enhance attract stringent supervisory action.
the limit of maximum balance at the end of the day 4. This directive is issued under Section 10(2) read with
from Rs. 1 lakh to Rs. 2 lakh per individual customer of
Section 18 of the Payment and Settlement Systems Act,
PBs with immediate effect.
2007 (Act 51 of 2007).
4. The other terms and conditions of the Licensing
Guidelines remain unchanged. (P. Vasudevan)
Chief General Manager
(Prakash Baliarsingh)
Chief General Manager Guidelines on Regulation of Payment
Aggregators and Payment Gateways
Framework for processing of e-mandates
RBI/2020-21/117
for recurring online transactions March 31, 2021

RBI/2020-21/118
1. We invite a reference to our circular
March 31, 2021
DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March
17, 2020 (as updated from time to time) and the
1. A reference is invited to our circulars
clarification dated September 17, 2020 issued on the
DPSS.CO.PD.No.447/02.14.003/2019-20 dated August
subject (Annex). Accordingly, neither the authorised
21, 2019, DPSS.CO.PD.No.1324/02.23.001/2019-20
Payment Aggregators (PAs) nor the merchants on-
dated January 10, 2020 and DPSS.CO.PD.No.754/
boarded by them can store customer card credentials
02.14.003/2020-21 dated December 4, 2020, wherein
within their database or server.
the framework for registering e-mandates for recurring
online transactions using cards / wallets / Unified 2. Based on the representations received from the
Payments Interface was put in place. The framework industry seeking additional time for implementing the
had ensured that changing payment needs of above instructions, it has been decided, as a one-time
customers were accommodated by adequately measure, to extend the timeline for non-bank PAs by
balancing safety, security and convenience of such six months, i.e., till December 31, 2021, to enable the
transactions. Stakeholders were given sufficient time payment system providers and participants to put in
to complete the process of migration to the framework place workable solutions, such as tokenisation, within
by March 31, 2021. the framework set out in the circular dated March 17,
2020 cited above and our circular DPSS.CO.PD No.1463/
2. It is, however, noted that the progress of onboarding
02.14.003/2018-19 dated January 08, 2019 on
existing as well as new mandates of customers as per
“Tokenisation – Card transactions”. All other provisions
the framework is not satisfactory. Keeping in view the
of the circular dated March 17, 2020 referred to above,
requests of some stakeholders and to prevent any
shall remain unchanged.
inconvenience to customers, it has been decided, as a
one-time measure, to extend the timeline for ensuring 3. This directive is issued under Section 10 (2) read with
full compliance to the framework till September 30, Section 18 of Payment and Settlement Systems Act,
2021. During the extended timeline, no new mandate 2007 (Act 51 of 2007).
for recurring online transactions shall be registered by
stakeholders, unless such mandates are compliant with (P. Vasudevan)
the framework. Chief General Manager

54 | 2021 | MAY | BANKING FINANCE