The Reserve Bank of India has introduced new guidelines to make recurring digital payments safer.
These rules fall under the “Digital Payments – E-mandate Framework, 2026” and apply to all platforms like cards, UPI, and prepaid wallets.
The main focus is simple: improve security while keeping payments smooth for users.
What Is Changing for Users?
If you use auto-pay for subscriptions, bills, or EMIs, these changes will affect you.
The biggest update is the use of an additional factor of authentication (AFA).
This means extra verification—like OTP or app approval—for better security.
To activate auto-pay, users must complete a one-time registration with AFA.
You can also:
Set a validity period for the mandate
Modify or cancel it anytime
Choose how you receive alerts (SMS or email)
No OTP for Payments Up to Rs 15,000
The RBI has simplified smaller payments.
Recurring transactions up to Rs 15,000 can now go through without OTP or extra approval.
For higher-value payments, AFA will still be required.
There’s also a special relaxation:
Insurance premiums
Mutual fund SIPs
Credit card bill payments
These can go up to Rs 1 lakh without OTP.
How Recurring Payments Will Work
The first transaction under any e-mandate will always need authentication.
After that, future payments can happen automatically, depending on the amount and rules.
Users can set:
Fixed payment amounts
Or variable amounts with a maximum limit
This gives better control over spending.
Alerts Before Every Payment
To avoid surprises, users will receive a notification at least 24 hours before any auto debit.
This message will include:
Merchant name
Payment amount
Date and time of deduction
Reason for the transaction
You also get the option to cancel or skip a payment before it is processed.
Some Exceptions to the Rule
Not all transactions need alerts.
For example, auto-recharge of FASTag or transit cards may not require pre-notification.
This keeps small, frequent payments quick and hassle-free.
Why This Matters
These new rules aim to strike a balance between convenience and security.
Users get more control over their money, while also being protected from fraud or unexpected charges.
For anyone using auto-pay regularly, these changes make digital payments safer and more transparent.
