In a major move to simplify and secure recurring digital payments, the Reserve Bank of India has introduced the Digital Payments – E-Mandate Framework, 2026.
The new framework aims to make auto-debit transactions smoother, safer, and more user-friendly while strengthening regulatory oversight across financial institutions.
What is the E-Mandate Framework?
An e-mandate is an electronic authorization given by a customer to allow recurring payments such as:
- OTT subscriptions
- EMI payments
- Insurance premiums
- Mutual fund SIPs
- Credit card bill payments
- Utility bills
The new framework consolidates multiple earlier circulars into one single set of directions.
One-Time Registration with AFA
Under the new rules, customers opting for e-mandate must complete a one-time registration process using Additional Factor Authentication (AFA) such as OTP.
Once registered, customers can:
- Approve recurring payments
- Modify mandates
- Cancel mandates anytime
This gives users more control over recurring transactions.
Pre and Post Transaction Notifications
Issuers must now send:
Pre-Transaction Notification
At least 24 hours before the debit or charge transaction.
This allows customers to:
- Review the payment
- Cancel or opt out if needed
Post-Transaction Notification
Sent after the transaction is completed.
This improves transparency and user awareness.
Relaxation in Authentication Requirements
One of the biggest changes is reduced need for repeated OTP verification.
Transactions up to ₹15,000
Recurring transactions up to ₹15,000 can be processed without repeated AFA after initial registration.
Higher Limit up to ₹1 Lakh for Certain Categories
For specific categories, the limit is increased to ₹1 lakh without repeated AFA:
- Insurance premiums
- Mutual fund investments
- Credit card bill payments
This will make routine payments faster and more convenient.
No Charges for Customers
The RBI clarified that:
- No charges will be levied for availing e-mandate facility
- Existing mandates can be mapped in case of credit card re-issuance
This ensures continuity and convenience.
Expansion to Cross-Border Transactions
The framework now includes cross-border recurring transactions.
This means:
- International recurring payments will come under RBI rules
- Better security for overseas transactions
- Lower fraud risks
Conclusion
The launch of the Digital Payments – E-Mandate Framework, 2026 by the Reserve Bank of India marks another significant step toward a secure and seamless digital payments ecosystem in India. By balancing convenience with strong consumer protection, the framework is expected to boost trust and adoption of recurring digital payments.