- Customers to receive 24-hour prior alerts, greater control over auto-debits, and enhanced authentication safeguards
Punjab Newsline | New Delhi
The Reserve Bank of India (RBI) has introduced new guidelines to strengthen the security of digital payments, particularly those made through e-mandates. The framework, titled Digital Payment E-Mandate Framework 2026, has come into immediate effect.
Under the revised rules, recurring payments will now require an Additional Authentication Factor (AFA), such as a One-Time Password (OTP), to ensure enhanced security. This move aims to safeguard users from unauthorized auto-debit transactions.
An e-mandate allows customers to authorize payments in advance, enabling automatic deductions at scheduled intervals. These payments can either be fixed or variable, with an option for users to set a maximum cap in case of fluctuating amounts.
Key Highlights of the New Guidelines
When is OTP Mandatory?
- Transactions up to ₹15,000 can be processed without OTP.
- Transactions exceeding ₹15,000 will require OTP authentication.
- For payments related to insurance, mutual funds, and credit card bills, transactions up to ₹1 lakh can be processed without OTP.
Advance Notification and Transparency
- Customers will receive a notification at least 24 hours before every transaction.
- The alert will include details such as the merchant’s name, transaction amount, date, and time.
- Users can choose to receive these alerts via SMS or email.
Control, Modification, and Cancellation
- Any modification or cancellation of an e-mandate will require AFA authentication.
- Customers will have the option to opt out of any transaction.
- The opt-out process will also be validated through AFA.
First Transaction Rules
- The first transaction under an e-mandate will always require AFA.
- If payment is made during registration, both processes can be completed simultaneously.
Exceptions to Notification Rule
- No prior notification is required for auto-replenishment of balances in FASTag and National Common Mobility Card (NCMC) accounts registered under e-mandates.
The RBI’s move is expected to boost consumer confidence in digital payments by enhancing transparency, control, and security across recurring transactions.