RBI Consolidates E-Mandate Rules for Recurring Digital Payments Under New 2026 Framework

Posted On - 27 May, 2026 • By - King Stubb & Kasiva

On April 21, 2026, RBI issued a consolidated master framework[1] governing e-mandates for recurring digital payment transactions, replacing all earlier circulars issued on the subject since 2019. The framework applies with immediate effect to all Payment System Providers and Participants processing recurring domestic or cross-border transactions through cards, PPIs, and UPI.

E-Mandate Registration and Lifecycle

The framework governs the complete lifecycle of e-mandates. Key requirements for registration and management include:

  • Registration of an e-mandate requires a one-time Additional Factor of Authentication (“AFA”).
  • Every mandate must specify a validity period that customers may modify or cancel at any time.
  • Mandates may be for fixed or variable amounts, subject to RBI-prescribed limits.

Transaction Execution and Notification Requirements

The first transaction executed under an e-mandate also requires AFA. Issuers are required to send pre-debit notifications at least 24 hours prior to debit, enabling customers to opt out of a specific transaction or withdraw the mandate altogether.

Pre-Debit and Post-Debit Notifications

  • Pre-debit notifications must be sent at least 24 hours before the debit, allowing customers to opt out or withdraw the mandate.
  • FASTag and National Common Mobility Card (“NCMC”) auto-replenishment mandates remain exempt from the pre-debit notification requirement.
  • Post-debit notifications containing debit details and grievance redressal information are also mandatory.

Transaction Thresholds and AFA-Free Limits

With respect to transaction thresholds:

  • Recurring payments up to Rs. 15,000 may be processed without AFA.
  • Insurance premiums, mutual fund subscriptions, and credit card bill payments benefit from an enhanced AFA-free threshold of Rs. 1,00,000.

Additional Provisions

The framework further clarifies the following:

  • Customers cannot be charged for availing e-mandate facilities.
  • Existing mandates linked to cards may be migrated to reissued cards.

Repeal of Earlier Circulars

Eight earlier circulars issued since August 2019 stand repealed pursuant to this framework.

Impact and Significance

The consolidated framework brings long-awaited uniformity and clarity to the recurring payments ecosystem, which had previously evolved through multiple fragmented circulars. Enhanced customer protection measures are expected to strengthen consumer confidence in digital recurring payment systems, including:

  • Mandatory pre-debit alerts
  • Simplified opt-out mechanisms
  • Grievance redressal requirements

[1] https://rbidocs.rbi.org.in/rdocs/notification/PDFs/396MDD002E435ECA145509929FC3ACBCFD0E9.PDF

Last Updated on 27 May, 2026