Customers will now get alerts at least 24 hours before any automatic payment is deducted, after the Reserve Bank of India (RBI) introduced the Digital Payments – E-Mandate Framework, 2026, on Tuesday to streamline and secure recurring transactions.
Aimed at preventing unexpected debits, the central bank has made it mandatory for issuers to send pre-transaction notifications at least a day before the actual charge.
The new framework brings together all existing guidelines on e-mandates—commonly used for subscriptions, utility bills and SIPs—making them more transparent and user-friendly.
Mandatory Security and Registration
To strengthen security, customers must explicitly approve auto-debit instructions during registration using an additional authentication layer. The RBI said mandates will be registered only after successful validation through an Additional Factor of Authentication (AFA).
Greater Customer Control
Users will have the flexibility to modify or cancel their e-mandates at any time. Issuers are also required to provide an option to withdraw mandates or change their validity period whenever needed.
Customers can further block specific transactions before they are processed, giving them tighter control over recurring payments.
Transaction Limits and Authentication
Recurring payments up to ₹15,000 can be processed without additional authentication. Transactions exceeding this amount will require AFA.
However, for select essential payments such as insurance premiums, mutual fund investments and credit card bill payments, the limit has been increased, allowing transactions up to ₹1 lakh without additional authentication.
Notifications and No Charges
Issuers must send post-transaction alerts for every debit and include details of grievance redressal mechanisms.The RBI has also clarified that customers will not be charged for using the e-mandate facility for recurring payments.
The new guidelines replace all earlier circulars, creating a single, comprehensive framework for managing recurring digital transactions in India.
👉 Click here to read the latest Gujarat news on TheLiveAhmedabad.com