RBI Changes E-Mandate Norms: OTP-Free Payments Up to ₹15,000

The Reserve Bank of India on Tuesday issued a consolidated e-mandate framework, effective immediately. The new framework brings recurring digital payment rules under a single set of directions and applies to domestic and cross-border transactions processed through cards, UPI, and prepaid payment instruments. 

What has the RBI announced?

Under the new framework: 

• Recurring transactions up to ₹15,000 per transaction can be processed without fresh additional authentication.
• For insurance premiums, mutual fund subscriptions, and credit card bill payments, the limit has been raised to ₹1 lakh per transaction.

The new rules apply to payments made through: 

• Cards
• UPI
• And all other prepaid payment instruments

Note: This does not mean every debit will go through without verification. A customer must first complete a one-time e-mandate registration with additional authentication. The relaxation applies to later debits that fall within the permitted limit.

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How Does the RBI Retain Key User Protection Measures? 

The RBI has kept several customer safeguards within the framework:

• Issuers must send a pre-transaction notification at least 24 hours before the debit, including the merchant name, amount, debit date or time, and mandate reference number.
• A post-transaction notification must also be sent after the debit.
• Customers can modify the validity period or later opt out of or cancel the mandate.
• No charge can be levied for using the e-mandate facility.
• In card-based cases, existing mandates can be linked to reissued cards.
• FASTag and NCMC auto-replenishment are exempt from pre-debit notification requirements.

Conclusion 

The RBI has repealed older circulars issued between 2019 and 2024 and replaced them with this consolidated 2026 framework. The move is expected to make low-value recurring payments smoother, allow higher limits for select financial categories, and extend the framework to cover cross-border use cases under a single updated rulebook. 

Source: https://www.livemint.com/

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