Outlook Business Desk
RBI has revised its Digital Payments E-Mandate Framework 2026, updating rules for auto-pay via credit cards, debit cards, prepaid instruments and UPI. The changes take effect immediately for all providers managing recurring domestic and cross-border transactions.
Recurring payments up to ₹15,000 can be processed without OTP once a one-time e-mandate is set using additional factor authentication. After approval, future eligible transactions are auto-debited without repeated OTP verification.
The framework covers regular payments such as fixed deposits, mutual fund investments, SIPs, OTT and DTH subscriptions, EMIs, utility bills like electricity, water, internet and insurance-related deductions along with other recurring financial transactions.
Users can edit, pause or cancel recurring payment mandates anytime using additional factor authentication. For variable payments, spending caps can be set to prevent excess deductions. Providers must also clearly share mandate validity details at registration.
Transactions above ₹15,000 generally need OTP authentication. However, registered e-mandates allow selected payments like insurance premiums, mutual funds and credit card bills to go up to ₹1 lakh without additional factor authentication.
Banks cannot charge extra fees for e-mandate services. They must send pre-debit alerts at least 24 hours before payment with full transaction details, allowing users to cancel or opt out if needed.
Users can choose alert modes like SMS or email. FASTag and NCMC auto-recharge transactions are exempt from pre-alerts. Banks must still send post-payment notifications and provide grievance support. Fraud cases are covered under zero liability if reported quickly.
RBI has also proposed updated rules for prepaid instruments and wallets including general, gift, transit and NRI-linked PPIs. Eligible banks issuing debit cards may also issue PPIs after informing the DPSS office in Mumbai.
Meanwhile, General-purpose PPIs may hold up to ₹2 lakh with monthly cash loading capped at ₹10,000. Gift PPIs are limited to ₹10,000 while transit PPIs carry a maximum cap of ₹3,000 as per the draft proposal.