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RBI Tightens E-Mandate Rules, Adds Extra Authentication for Payments Over ₹15,000

The Reserve Bank of India has issued consolidated guidelines mandating an additional factor of authentication for e-mandates on recurring digital payments. The new rules, effective immediately, apply to all payment system providers handling auto-debit transactions via cards, UPI, and prepaid instruments. For enhanced security, recurring transactions exceeding ₹15,000 and high-value payments like large insurance premiums will require this extra verification. The framework allows users to set mandates for fixed or variable amounts, modify or cancel them, and use the facility without any charges.

Key Points: RBI Mandates Extra Authentication for Recurring Payments Above ₹15,000

  • Extra authentication for payments over ₹15,000
  • Mandatory for first transaction
  • Applies to cards, UPI, prepaid instruments
  • No charges for e-mandate facility
  • Users can modify or cancel mandates
2 min read

RBI tightens e-mandate rules, makes extra authentication mandatory for recurring payments above Rs 15,000

RBI issues new e-mandate rules requiring additional authentication for recurring payments over ₹15,000 and high-value transactions to enhance security.

"The mandate will only be activated after successful validation of an additional authentication factor - RBI"

Mumbai, April 21

The Reserve Bank of India on Tuesday issued consolidated guidelines for e-mandates in digital payments, mandating an additional factor of authentication to enhance the security of recurring transactions.

The new norms are applicable to all payment system providers and participants handling auto-debit payments across cards, prepaid payment instruments, and the Unified Payments Interface (UPI), covering both domestic and cross-border transactions. The directions have come into effect immediately.

Under the revised framework, customers opting for the e-mandate facility will have to complete a one-time registration process.

"The mandate will only be activated after successful validation of an additional authentication factor, over and above the standard verification process carried out by issuers," RBI said.

The central bank also clarified that the first transaction under any e-mandate must mandatorily go through this additional authentication layer.

To further strengthen safeguards, the RBI said recurring transactions exceeding Rs 15,000 will require additional authentication.

High-value payments such as insurance premiums, mutual fund subscriptions, and credit card bill payments above Rs 1 lakh will also need this extra layer of verification before processing.

The framework provides flexibility to users, allowing them to set e-mandates for fixed or variable amounts within limits prescribed by the central bank.

In the case of variable mandates, issuers must enable customers to define a maximum transaction value.

Any modification to an existing mandate will require fresh authentication.

Each e-mandate will come with a defined validity period, and customers will have the option to modify or cancel the mandate at any time.

The RBI has directed issuers to clearly communicate these features to users during the registration process to ensure transparency.

Importantly, the central bank clarified that customers will not be charged for availing the e-mandate facility for recurring payments.

It also stated that payments executed under e-mandates will not be subject to any separate limits or controls set by customers beyond the prescribed framework.

- IANS

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Reader Comments

R
Rohit P
Good move for security, but I hope it doesn't make paying my insurance premium and mutual fund SIPs a hassle every single time. The process needs to be smooth. Fingers crossed the banks implement this well.
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Aditya G
Finally! This was much needed. So many frauds happen with recurring payments. The fact that we can set a max limit for variable mandates and cancel anytime is a great user-friendly feature. Thumbs up, RBI!
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Sarah B
As someone who recently moved to India, I appreciate this clarity. The digital payment system here is advanced, and such safeguards are crucial for building long-term trust. The no-charge policy is also a relief.
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Karthik V
While I understand the security intent, I'm a bit concerned. We already have so many OTPs and authentications. Adding another step might discourage people from using convenient auto-pay for genuine subscriptions. Hope the balance is right.
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Meera T
This is excellent for senior citizens like my parents. They are often worried about automatic deductions. Knowing there's an extra check for larger amounts will give them more confidence to use digital payments. 🙏

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