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There is good news for SIP investors as they can now set up e-mandate of up to Rs.1 lakh through any UPI app like Bhim, Gpay and PhonePe.
RBI has increased e-mandate limit through UPI from Rs.15,000 to Rs.1 lakh. Such a mandate is required to set up recurring payment like credit card payment, insurance policies and mutual fund SIPs.
Currently, investors can start their SIPs on real time basis and generate e-mandate immediately. Investors can use their virtual payment address (VPA)/UPI handle to mandate an Autopay facility for their SIPs.
In a press release, RBI said, “The number of e-mandates registered currently stands at 8.5 crore, processing nearly Rs.2800 crores of transactions per month. 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 Additional Factor Authentication (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.”
