The Reserve Bank of India (RBI) has introduced new rules to make recurring digital payments safer.
These updated guidelines, called the Digital Payments – E-mandate Framework, 2026, are effective immediately.
They apply to all payment systems, including cards, UPI, and prepaid wallets, for both domestic and international transactions.
What Is Changing for Users?
The biggest change is stronger security.
Customers must now complete an additional factor of authentication (AFA)—like an OTP or biometric check—while setting up or modifying auto payments.
This ensures that only the account holder can approve recurring transactions.
How E-Mandate Registration Works
To start auto payments, users need to register once.
This process will:
Require AFA verification
Clearly mention how long the mandate is valid
Allow users to modify or cancel anytime
Users can also set limits for payments, especially if the amount changes every month.
OTP Rules: When Is It Required?
The RBI has made the rules simple:
Payments up to ₹15,000 can go through without OTP
Payments above ₹15,000 will need OTP approval
However, there’s a special relaxation:
Insurance premiums, mutual fund SIPs, and credit card bills can go up to ₹1 lakh without OTP
This makes essential payments smoother while keeping high-value transactions secure.
What Happens During Each Payment?
The first transaction always requires authentication.
After that, recurring payments will be processed automatically—based on the rules set during registration.
But customers stay in control at all times.
You’ll Get Alerts Before Every Payment
Banks or payment providers must send a notification at least 24 hours before any deduction.
This message will include:
Merchant name
Payment amount
Date and time
Reason for the debit
Users can cancel or opt out of a transaction if needed, with proper authentication.
Important Exception to Know
Pre-transaction alerts are not required for:
FASTag auto-recharges
National Common Mobility Card (NCMC) top-ups
These are treated as low-risk, routine payments.
Why This Matters
The new rules aim to strike a balance between convenience and security.
Users get:
More control over auto payments
Better protection against fraud
Clear information before every transaction
Final Take
With these updated rules, recurring payments become safer and more transparent.
For users, it means fewer surprises and better control over money—without losing the convenience of automatic payments.
