Skip to main content

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


Follow at - Telegram   Instagram   LinkedIn   Twitter

Labels:

Comments

Post a Comment

Popular Posts

Export and Import of Goods and Services

Reserve Bank of India (RBI) has issued regulations on export and import of goods and services. What are the regulations for declaration of exports? An exporter of goods shall furnish to the specified authority, a declaration in the Export Declaration Form (EDF) specifying the amount representing the full export value of goods, at the time of export. EDF will be deemed to be submitted as part of shipping bill for goods exported through Electronic Data Interchange (EDI) port. An exporter of services shall furnish to the specified authority, a declaration in EDF specifying the amount representing the full export value of services, within 30 days from the end of month in which invoice for services has been raised. The exporter of services who has exported services to one or more recipients in a month, may submit a single EDF for all such exports. The exporter of services other than software, may submit an EDF on or before the date of receipt of payment. In the case of a non-EDI port for ex...
Post a Comment
Read more

Digital Payments Awareness Week 2026

Reserve Bank of India (RBI) is observing digital payments awareness week from March 09 to 15, 2026. Digital Payments Awareness Week (DPAW) Digital Payments Awareness Week (DPAW) is an initiative to highlight the impact and importance of digital payments and to create awareness about safe usage of digital payment products.  Digital Payments Awareness Week (DPAW) 2026 Reserve Bank of India (RBI) is observing DPAW 2026 from March 09 to 15, 2026.  Under the mission ‘Har Payment Digital’, the theme for the current year is ‘Thoda Dhyan Se’ (be alert/ be careful). The theme emphasises the safe use of digital payments. ‘Har Payment Digital’ mission RBI had launched the mission ‘Har Payment Digital’ on the occasion of the DPAW 2023. This is part of RBI’s endeavour to make every person in India a user of digital payments. Previous Digital Payments Awareness Weeks (DPAWs) Year Theme 2025 ‘India Pays Digitally’ under the mission ‘Har Payment Digital’ ...
Post a Comment
Read more

FEMA - Regulations on Guarantees

Reserve Bank of India (RBI) had issued regulations governing guarantees under the Foreign Exchange Management Act, 1999 (FEMA). What is a guarantee? A guarantee, including a counter-guarantee, means a contract, by whatever name called, to perform the promise, or discharge a debt, obligation or other liability (including a portfolio of debts, obligations or other liabilities), in the event of default by the principal debtor. Who are the participants in a guarantee transaction? Principal debtor – a person in respect of whose default the guarantee is given. Surety – a person who gives a guarantee. Creditor – a person to whom the guarantee is given. When can a person resident in India act as surety / principal debtor? A person resident in India may act as a surety / principal debtor for a guarantee, subject to conditions that – The underlying transaction for which the guarantee is being given or arranged is not prohibited under FEMA guidelines. The surety and the principal debtor are eligi...
Post a Comment
Read more

Priority Sector Lending (PSL) guidelines (updated as on January 19, 2026)

Reserve Bank of India (RBI) has issued the revised guidelines on Priority Sector Lending (PSL) which has come into effect from April 01, 2025.  To whom does Priority Sector Lending (PSL) guidelines apply? Priority Sector Lending (PSL) guidelines apply to – Commercial Bank [including Regional Rural Bank (RRB), Small Finance Bank (SFB), Local Area Bank (LAB)] Primary (Urban) Co-operative Bank (UCB) other than Salary Earners’ Bank  What are the categories under PSL? The categories under priority sector are as follows – Agriculture Micro, Small and Medium Enterprises Export Credit Education Housing Social Infrastructure Renewable Energy Others What are the PSL targets for banks? The targets and sub-targets set under PSL, to be computed on the basis of the Adjusted Net Bank Credit (ANBC) / Credit Equivalent of Off-Balance Sheet Exposures (CEOBSE) as applicable as on the corresponding date of the preceding year are as below – Categories Total Priority Sector ...
Post a Comment
Read more

Interest Subvention for Pre and Post Shipment Export Credit under Export Promotion Mission (EPM) – Niryat Prothsahan

Government of India has launched the interest subvention for pre- and post- shipment export credit under the Export Promotion Mission (EPM) – Niryat Prothsahan scheme. How will the Scheme be operationalised? The Scheme will be operationalised by the Reserve Bank of India (RBI) through various banks that provide pre and post shipment credit to exporters. It will be jointly monitored by the Director General of Foreign Trade (DGFT) and the RBI through a consultative mechanism.  Who is eligible to receive interest subvention? Micro, Small and Medium Enterprise (MSME) manufacturer exporters and merchant exporters holding a valid and active Importer Exporter Code (IEC) and a valid MSME Udyam Registration Number shall be eligible to receive interest subvention support on pre- and post-shipment rupee export credit. What kind of credit is eligible for interest subvention? Only export credit extended by lending institutions in accordance with the RBI guidelines shall qualify for support....
Post a Comment
Read more