The Reserve Bank of India (RBI) has revised its recurring e-mandate framework, allowing automatic payments of up to ₹15,000 per transaction without additional factor authentication (AFA) such as OTPs. Transactions above this threshold will continue to require extra verification, according to the RBI’s Digital Payments – E-mandate Framework, 2026. 

In a major relief for consumers, the central bank has also permitted insurance premiums, mutual fund SIP subscriptions and credit card bill payments of up to ₹1 lakh per transaction to be processed without AFA under registered e-mandates. 

What changes for users 

Under the updated framework, customers will need to complete a one-time registration of the e-mandate using AFA. Once approved, recurring payments within the prescribed limits will be automatically processed without requiring OTP authentication each time. 

However, payments exceeding the applicable thresholds will continue to need additional authentication. 

The RBI said the revised norms consolidate and replace previous circulars, creating a uniform framework for recurring transactions across payment systems. 

Smoother payments for subscriptions, bills, and EMIs 

The new rules are expected to simplify auto-debit payments for services such as, OTT and streaming subscriptions, utility bills, loan EMIs, mobile app renewals, insurance premiums, mutual fund investments, and credit card bill payments. 

Smaller recurring payments will now go through seamlessly without repeated OTP interruptions, improving convenience for users. 

Validity, cancellation, and consumer control 

According to the guidelines, every e-mandate registered by an issuer must clearly specify its validity period. Customers will also have the flexibility to modify, pause or withdraw mandates at any time, and issuers must communicate these options clearly during registration. 

24-Hour alert window & grievance redressal 

The central bank has retained safeguards by mandating a 24-hour pre-debit notification system, giving customers time to review or stop unwanted deductions before payment is processed. 

The central bank also said issuers must establish an appropriate dispute redressal mechanism to help customers lodge grievances. Existing RBI rules on limiting customer liability in unauthorised transactions will also apply to recurring e-mandate payments. 

Push for frictionless digital payments 

The updated framework reflects RBI’s broader push to make digital payments more seamless while ensuring robust consumer protection. As recurring digital payments become a routine part of daily life, the regulator aims to strike a balance between convenience and security.