The Reserve Bank of India (RBI) has introduced new rules to make recurring digital payments safer.
These rules apply to e-mandates—automatic payments like subscriptions, EMIs, or utility bills.
The biggest change is the use of an extra security step, called Additional Factor of Authentication (AFA), to protect users.
What Is Changing for Users?
Under the new rules, customers will now get alerts before and after every auto-debit.
This gives users more control and reduces the chances of unexpected deductions.
The guidelines are part of the RBI’s updated “Digital Payments – E-mandate framework, 2026” and are effective immediately.
Pre-Transaction Alerts: What You Will See
Before any payment is deducted, you will receive a notification at least 24 hours in advance.
This alert will include:
Merchant name
Amount to be deducted
Date and time of debit
Reference number
Reason for the payment
This helps you stay informed and avoid surprises.
You Can Now Cancel Payments Easily
One important feature is the option to opt out.
If you don’t want a particular payment to go through, you can cancel it.
However, this cancellation will require authentication through AFA to ensure it is done securely.
Exceptions to the Rule
Not all auto-debits will require pre-alerts.
Transactions related to FASTag balance top-ups and National Common Mobility Card (NCMC) auto-recharges are exempt from this rule.
Post-Transaction Alerts Also Mandatory
After the payment is completed, you will receive another notification.
This will confirm:
Payment details
Transaction time
Reference number
Reason for debit
Information on grievance support
This ensures full transparency for every transaction.
Who Will Be Affected?
These rules apply to all digital payment systems, including cards, prepaid wallets, and Unified Payments Interface (UPI).
They also cover both domestic and international recurring payments.
Final Take
The new RBI rules are designed to give users more control and better security.
With advance alerts, easy cancellation options, and clear confirmations, managing auto-debit payments is now safer and more transparent.
