The Reserve Bank of India (RBI) has introduced a consolidated framework for digital payment e-mandates, aimed at simplifying recurring payment systems while strengthening customer protection across platforms such as UPI, cards, and prepaid payment instruments (PPIs), including both domestic and cross-border transactions.
Under the revised guidelines, recurring transactions of up to ₹15,000 can now be processed without the need for a one-time password (OTP). This move is expected to make routine payments such as subscriptions and utility bills more seamless. Additionally, transactions exceeding ₹15,000 and up to ₹1 lakh—covering categories like insurance premiums, mutual fund investments, and credit card bill payments—may also be executed without additional factor authentication (AFA), subject to compliance with prescribed safeguards.
To balance convenience with security, the RBI has mandated a robust alert mechanism. Customers must receive pre-debit notifications at least 24 hours before the transaction, clearly specifying key details such as the merchant’s name, transaction amount, and debit date. These alerts will also provide users with an option to opt out of the transaction if required.
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Further, post-debit notifications are compulsory and must include complete transaction details along with information on grievance redressal channels. This ensures that customers remain informed at every stage and have recourse in case of disputes.
The framework emphasizes that while OTP requirements are relaxed for certain transactions, strong authentication must be completed at the time of registering the e-mandate. Customers opting for such mandates will need to undergo a one-time authentication process to authorize automatic debits from their bank accounts.
An e-mandate functions as a standing digital instruction that enables automatic recurring payments, eliminating the need for manual intervention each time a payment is due. The RBI has clarified that no additional charges will be levied for availing e-mandate facilities, and customers will retain full control over managing, modifying, or cancelling these mandates.
The central bank noted that the revised framework incorporates feedback from stakeholders and is designed to enhance user trust while promoting digital payments. By combining ease of use with layered security measures, the RBI aims to create a more efficient and secure ecosystem for recurring digital transactions.
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