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Guidelines on processing of e-mandates for recurring transactions

Reserve Bank of India (RBI) has enhanced the Additional Factor of Authentication (AFA) limit for e-mandates of recurring transactions.

What is an e-Mandate? 

A mandate is a standard instruction that a customer provides to his / her issuing bank and other institutions allowing them to automatically debit the mentioned amount from his / her bank account. e-Mandate is the electronic version of it.

What are the Guidelines on processing of e-mandates for recurring transactions?

The e-mandate framework prescribes an Additional Factor of Authentication (AFA), inter alia, while processing the first transaction in case of e-mandates / standing instructions on cards, prepaid payment instruments and Unified Payments Interface (UPI).

(Updated on January 06, 2024)

For subsequent transactions executing the e-mandates, the prescription of AFA is waived for transactions with values up to ₹15,000/- per transaction. However, the limit is up to ₹1,00,000/- (increased from ₹15,000/-) per transaction for the following categories –

  • Subscription to mutual funds
  • Payment of insurance premiums
  • Credit card bill payments

(Updated on August 31, 2024)

The e-mandate framework, currently enables recurring payments with fixed periodicity such as daily, weekly, monthly, etc. Now, the payments towards replenishment of balances in FASTag and National Common Mobility Card (NCMC), which are recurring in nature but without any fixed periodicity, have been brought under the e-mandate framework and an auto-replenishment facility has been introduced for such payments. The auto-replenishment will be triggered when the balance in FASTag or NCMC falls below a threshold amount set by the customer.

The e-mandate framework requires the issuer to send a pre-debit notification to the customer at least 24 hours prior to the actual charge / debit to the account. This requirement is exempt for payments made from customer’s account for auto-replenishment of balances in FASTag and NCMC under the e-mandate framework.

Proposed change in e-mandate framework

UPI Lite facility allows a customer to load his UPI Lite wallet up to ₹2000/- and make payments up to ₹500/- from the wallet. 

It is proposed to bring UPI Lite within the ambit of the e-mandate framework by introducing an auto-replenishment facility for loading the UPI Lite wallet, if the balance goes below a threshold amount set by the customer. Further, the requirement of additional authentication or pre-debit notification is proposed to be dispensed with. 


References

Reserve Bank of India. (2019, August 21). 'Processing of e-mandate on cards for recurring transactions'. Retrieved from https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11668&fn=9&Mode=0

Reserve Bank of India. (2020, January 10). 'Processing of e-mandate in Unified Payments Interface (UPI) for recurring transactions'. Retrieved from https://rbi.org.in/scripts/FS_Notification.aspx?Id=11784&fn=9&Mode=0

Reserve Bank of India. (2020, December 04). 'Processing of e-mandates for recurring transactions'. Retrieved from https://rbi.org.in/scripts/FS_Notification.aspx?Id=12002&fn=9&Mode=0

Reserve Bank of India. (2021, March 31). 'Framework for processing of e-mandates for recurring online transactions'. Retrieved from https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=12051&fn=9&Mode=0

Reserve Bank of India. (2022, June 16). 'Processing of e-mandates for recurring transactions'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12341&Mode=0

Reserve Bank of India. (2023, December 12). 'Processing of e-mandates for recurring transactions'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12570&Mode=0

Reserve Bank of India. (2024, August 22). 'Processing of e-mandates for recurring transactions'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12722&Mode=0

Reserve Bank of India. (2024, June 07). 'Statement on Developmental and Regulatory Policies'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58051


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