RBI Issues Digital Payments E-Mandate Framework To Simplify and Secure Recurring Transactions

The Reserve Bank of India (RBI) has issued a new Digital Payments – E-Mandate Framework, 2026, aimed at making recurring digital payments smoother, more secure, and user-friendly. It also aims to improve regulatory oversight and compliance standards on digital payments across financial institutions.

Under the new rules issued on April 21, customers opting for e-mandate are required to complete a one-time registration process with an additional factor authentication (AFA). Meanwhile, issuers will need to send a pre-transaction notification at least 24 hours before the charge or debit transaction is made, along with a post-transaction notification. The pre-transaction notification will allow users to review and, if needed, opt out of a payment before the debit occurs.

The framework consolidates multiple earlier circulars into a single set of directions governing recurring payments made through cards, unified payment interface (UPI), and prepaid payment instruments, covering both domestic and cross-border transactions.

Additional Factor Authentication

One of the most significant changes is the relaxation of authentication requirements. Under the new rules, recurring transactions of up to Rs. 15,000 can be processed without repeated additional factor authentication (AFA), such as OTPs, once the initial registration is done. For specific categories such as insurance premiums, mutual fund investments, and credit card bill payments, the limit has been raised substantially to Rs. 1 lakh to allow transactions without additional authentication. This move is expected to reduce friction in digital payments and improve user experience, particularly for routine transactions such as subscriptions and EMI payments.

RBI clarified that customers only need to complete a one-time registration process using AFA, after which they gain full control over their mandates, including the ability to modify or cancel them at any time. The regulator also said that no charges will be levied on customers availing the e-mandate facility for recurring transactions. Further, existing e-mandates can be mapped in case of re-issuance of credit cards, it said.

Expansion to Cross-border Payments

The RBI has also added cross-border recurring transactions in the framework, bringing international payments under the same regulatory umbrella. This is aimed at enhancing security and reducing fraud risks in overseas digital transactions. The new framework reflects the RBI’s broader strategy of promoting frictionless digital transactions while maintaining strong consumer protection.