RBI Notifies Digital Payments – E-Mandate Framework, 2026

The Reserve Bank of India (“RBI”), by notification dated 21.04.2026¹ , has notified the Digital Payments – E-mandate Framework, 2026 (“DP Directions”) to consolidate all circulars pertaining to e-mandates.

The salient features of the DP Directions are as follows:

i. Applicability: The DP Directions shall be applicable to all payment system providers and payment system participants in respect of processing of recurring transactions, whether domestic or cross-border, using cards, prepaid payment instruments, and unified payments interface.

ii. Registration and revocation of e-mandate: A customer opting for the e-mandate facility shall complete a one-time registration process, which shall be validated through additional factor of authentication (“AFA”), in addition to the normal process required by issuer. The issuer shall specify the validity period of every e-mandate and shall provide the customer with a facility to modify or withdraw the e-mandate at any time. The issuer shall communicate such facility at the time of registration. The e-mandate may be registered for a fixed amount or a variable amount subject to the cap prescribed by RBI. In case of variable e-mandates, the issuer shall provide a facility to specify the maximum transaction value. The issuer shall provide the customer with a facility to choose or change the mode of receiving pre-transaction notifications. Any modification or withdrawal of an existing e-mandate shall require AFA validation.

iii. Processing of transactions: The first transaction under an e-mandate requires AFA validation, which may be combined with registration if processed simultaneously. Subsequent recurring transactions are governed solely by the terms of the mandate and are not subject to any additional customer-imposed limits or controls.

iv. Notification: Issuers are required to send a pre-transaction notification to customers at least 24 hours before a charge/debit, with details specified in the DP Directions. Customers must be provided with an option to opt out of any transaction or the e-mandate, validated through AFA, with confirmation of such opt-out. However, pre-transaction notification requirement does not apply to e-mandates for auto-replenishment of FASTag and National Common Mobility Card. The issuer shall also send a post-transaction notification containing details specified in the DP Directions.

In addition to the above provisions, recurring transactions of up to INR 15,000 may be processed without AFA, while transactions above INR 15,000 will be subject to AFA. Payments for insurance premiums, mutual fund subscriptions, and credit card bills of up to INR 1,00,000 are exempt from AFA. Issuers must maintain a robust dispute redressal system, with RBI guidelines on limiting customer liability for unauthorised transactions applying to e-mandates. Additionally, issuers cannot charge customers for using the e-mandate facility. Existing mandates may be linked to reissued cards. Acquirers must ensure merchant compliance with DP Directions.

The DP Directions have come into force with effect from 21.04.2026.

Footnote

1. Digital Payments – E-mandate Framework, 2026.

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