RBI New E-Mandate Rules: Auto Payments Up to Rs 15,000 Without OTP, Banks Must Send Pre-Debit Notifications

The Reserve Bank of India (RBI) has rolled out a revised and consolidated framework for e-mandates on digital payments, aiming to make recurring transactions smoother while strengthening user control and security. The new rules come into effect immediately and are expected to simplify processes for millions of users relying on auto-debit facilities for regular payments.

RBI Introduces New E-Mandate Rules; Auto Payments Up to Rs 15,000 Without OTP

Under the updated framework, customers can now process recurring transactions of up to Rs 15,000 without requiring repeated authentication such as OTPs. To enable this, users must first register a one-time e-mandate using Additional Factor Authentication (AFA), such as an OTP or PIN.

Once this initial approval is completed, subsequent payments within the Rs 15,000 limit will be executed automatically, without any further verification. However, any transaction exceeding this threshold will continue to require additional authentication, ensuring a balance between convenience and security.

Higher Limits for Insurance, Mutual Funds and Credit Card Bills

The RBI has also introduced key relaxations for specific financial categories. Recurring payments related to insurance premiums, mutual fund investments and credit card bill payments will be allowed up to Rs 1 lakh without additional authentication, provided they are registered under the e-mandate system.

This higher cap recognises the essential and often high-value nature of such payments, allowing users to avoid disruptions while maintaining continuity in financial commitments.

Banks Must Send Pre-Debit Notifications 24 Hours Before Auto Payments

To improve transparency and give customers better control, banks and payment service providers are now required to send pre-debit notifications at least 24 hours before a transaction is processed.

These alerts must include important details such as the merchant name, transaction amount and the scheduled debit date. This gives users enough time to review the payment and cancel or opt out if they notice any discrepancies or unauthorised charges.

RBI Makes Post-Transaction Alerts and Complaint Systems Mandatory

In addition to pre-debit alerts, the RBI has made it mandatory for institutions to send post-transaction notifications after the payment is completed. Alongside this, robust grievance redressal mechanisms must be in place to address customer complaints related to failed or unauthorised transactions.

Users Can Modify, Pause or Cancel E-Mandates Anytime

The updated framework also gives users greater flexibility in managing their recurring payments. Customers can now modify, pause or completely revoke their e-mandates at any time, with such changes authenticated through AFA.

For variable recurring payments, users can also set an upper transaction limit. This feature helps prevent unexpected debits beyond a defined threshold, offering an additional layer of financial control.

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