Why in News?
The Reserve Bank of India (RBI) issued the Digital Payments – E-Mandate Framework, 2026 on April 21, 2026. This consolidated framework unifies multiple previous circulars into a single set of rules to streamline recurring digital payments across UPI, cards, and wallets.
Key Rules and Limits
- Standard Transaction Limit: Recurring payments up to ₹15,000 can be processed automatically without a One-Time Password (OTP) or Additional Factor of Authentication (AFA).
- Higher Limit for Essentials: For specific financial commitments—insurance premiums, mutual fund SIPs, and credit card bill payments—the AFA-free limit is raised to ₹1,00,000.
- One-Time Setup: AFA (OTP) is mandatory only for the first transaction and the initial registration of the e-mandate.
- Modification & Withdrawal: Any change to the validity or amount, or the complete cancellation of a mandate, requires AFA validation to ensure the customer’s consent.
Customer Protection & Transparency
- Pre-Debit Alerts: Banks/issuers must send a notification (SMS/Email) at least 24 hours before any money is deducted. This must include the merchant’s name, amount, and date.
- Post-Debit Notifications: A confirmation message must be sent after the debit, now including mandatory grievance redressal details.
- Zero Charges: The RBI has strictly prohibited banks and payment providers from charging customers any fees for setting up or using the e-mandate facility.
- Opt-Out Facility: Users must have the option to skip a specific transaction or withdraw the entire mandate at any time through the issuer's platform.
- Liability: Standard RBI rules on limiting customer liability for unauthorised electronic transactions now explicitly apply to all e-mandates.
Notable Exemptions
- FASTag & NCMC: Automatic balance replenishments for FASTag and the National Common Mobility Card are exempt from the 24-hour pre-debit notification requirement, as these are triggered immediately by low balances.
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