The Reserve Bank of India (RBI) has introduced a revised and consolidated framework for e-mandates on digital payments, designed to make recurring transactions more seamless while enhancing user control and security. Effective immediately, the updated rules are expected to streamline auto-debit processes, making them more efficient and user-friendly. The move aims to benefit millions of customers who depend on e-mandates for regular payments such as subscriptions, utilities, and other recurring expenses, while ensuring greater transparency and safer digital payment experiences.
Under the updated framework, customers can now complete recurring transactions of up to Rs 15,000 without needing repeated authentication like OTPs for each payment. However, to activate this facility, users must first set up a one-time e-mandate using Additional Factor Authentication (AFA), such as an OTP or PIN.
Once the initial approval is completed, subsequent payments up to the Rs 15,000 limit will be processed automatically without requiring further verification. However, transactions exceeding this limit will still need additional authentication, maintaining a balance between convenience and security.
The RBI has also introduced key relaxations for certain financial categories. Recurring payments such as insurance premiums, mutual fund investments, and credit card bill payments can now be processed up to Rs 1 lakh without additional authentication, as long as they are registered under the e-mandate system. This higher limit acknowledges the essential and often high-value nature of these transactions, helping users maintain uninterrupted financial commitments while ensuring continued convenience and efficiency.
To enhance transparency and give customers greater control, banks and payment service providers must now issue pre-debit alerts at least 24 hours before a transaction is executed. These notifications will include key details such as the merchant’s name, transaction amount, and the scheduled debit date, allowing users sufficient time to review the payment and cancel or dispute it if they find any errors or unauthorised activity.
In addition to pre-debit alerts, the RBI has also mandated post-transaction notifications once a payment is successfully completed. It further requires financial institutions to maintain strong grievance redressal systems to handle complaints regarding failed or unauthorised transactions. Users are also given the flexibility to modify, pause, or cancel their e-mandates at any time.
The updated framework also offers users greater flexibility in managing recurring payments. Customers can now modify, pause, or fully revoke their e-mandates at any time, with all changes verified through Additional Factor Authentication (AFA). For variable recurring payments, users can also define an upper transaction limit, ensuring that no amount beyond the set threshold is debited. This added feature provides stronger financial control and helps prevent unexpected or unauthorized deductions.
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