RBI Digital Payments Rule: The RBI has implemented a new e-mandate rule to enhance the security of digital payments; under this rule, auto-payments of up to ₹15,000 can be processed without an OTP, while an OTP will be mandatory for amounts exceeding this limit.
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RBI Digital Payments Rule: The Reserve Bank of India (RBI) has issued new rules regarding e-mandates to further enhance the security of digital payments. These guidelines have been designated as the ‘Digital Payment-E-mandate Framework 2026’ and have come into effect immediately. Under these guidelines, an Additional Factor of Authentication (AFA)—such as a One-Time Password (OTP)—has now been made mandatory for recurring transactions (recurring payments).
What is an E-mandate?
Speaking of e-mandates, it is a facility that allows a customer to pre-authorize a payment, resulting in the funds being automatically debited at a scheduled time. This amount can be either fixed or variable; however, in the case of variable amounts, the user is provided with the option to set a maximum limit.
When is AFA (OTP) required?
For individual transactions, payments of up to ₹15,000 can be processed without an OTP.
If you conduct a transaction exceeding ₹15,000, then AFA (OTP) becomes mandatory.
Conversely, for payments related to insurance, mutual funds, and credit card bills, transactions of up to ₹100,000 are permitted without an OTP.
Notifications and Controls
Please note that customers will be notified at least 24 hours prior to every transaction.
This notification will contain all relevant details, such as the merchant’s name, the transaction amount, the date, and the time.
Customers may choose to receive these notifications via SMS or email.
What are the rules regarding modifications and cancellations?
If you wish to modify or cancel an e-mandate, Additional Factor of Authentication (AFA) will be required.
A customer may opt out of any specific transaction.
The opt-out process will also be validated via AFA.
How is the first transaction processed?
Regarding the first transaction, it will invariably be processed with AFA.
However, if the payment is made at the time of registration itself, both processes can be completed simultaneously.
In Which Cases Is a Notification Not Required?
For registered e-mandates used to auto-replenish the balances of FASTag and the National Common Mobility Card (NCMC), a pre-transaction notification is not required.
