The Reserve Bank of India has introduced new rules for auto-debit payments under its updated e-mandate framework - ‘Digital Payments — E-mandate Framework, 2026'. The changes apply to recurring payments made through UPI, credit and debit cards and mobile wallets.
These changes are aimed at strengthening the digital payments ecosystem amid rising cases of phishing and SIM swap scams. Under the new rules, users will receive mandatory pre-debit notifications before any automatic payment is processed. The central bank has also imposed limits on how much money can be debited automatically without requiring a one-time password (OTP) and when additional factor authentication is compulsory for any transaction.
What Do The New Rules State?
Under new rules, recurring payments up to Rs 15,000 can happen automatically without OTP after a one-time approval. To activate this process, users must first register an e-mandate using additional authentication (AFA), such as OTP or PIN. Once set, payments like subscriptions and utility bills will be processed without repeated verification.
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Users will also get pre-debit alerts at least 24 hours before any payments occur via their accounts. The rules also allow easy management of mandates, letting users view, change or cancel them through their bank or card provider. For transactions above Rs 15,000, an additional AFA, such as an OTP or biometric, is still required.
Another key highlight is relaxed rules for some recurring payments. The RBI has allowed higher limits without additional authentication for select categories of payments. These include insurance premiums, mutual fund subscriptions and credit card bills up to Rs 1 lakh per transaction. Such payments won't need additional AFA if they are already registered under e-mandates.
The framework also requires banks to notify customers after every transaction. They must send post-transaction alerts along with details on grievance redressal for customers' convenience and awareness. The central bank also clarified that the customers will not be charged for using the e-mandate facility.
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