RBI Updates E-Mandate Framework: What It Means For Recurring Payments

The Reserve Bank of India has updated its e-mandate framework to simplify recurring payments, increase transaction limits without additional authentication, and protect consumers.

Key Points

RBI allows card issuers to map existing e-mandates to reissued cards, simplifying recurring payments.
Customers will not be charged for using the e-mandate facility for recurring transactions.
Transactions up to Rs 15,000 can be authorised without additional authentication.
Insurance premiums, mutual fund subscriptions, and credit card bill payments can be made without additional authentication up to Rs 1 lakh.
Issuers must have a dispute redressal system in place for customer grievances related to e-mandates.

The Reserve Bank on Tuesday allowed card issuers to map existing e-mandates to reissued cards.

In the consolidated directions on digital payments governing the e-mandate framework, the central bank directed issuers to provide details of the grievance redressal in a post-transaction notification to the customer.

Key Changes to E-Mandate Regulations

The changes in instructions on e-mandates were based on feedback from stakeholders, the RBI said.

The notification also said no charges shall be levied on customers for availing of the e-mandate facility for recurring transactions, and an acquirer shall ensure compliance with directions by merchants onboarded by them.

Customer Protection and Dispute Resolution

As per consolidated directions, the RBI said an appropriate dispute redressal system shall be put in place by the issuer to facilitate the customer to lodge grievances, and RBI instructions on limiting liability of customers for unauthorised transactions shall be applicable to recurring transactions under e-mandates as well.

Transaction Limits and Authentication

The central bank said recurring transactions may be authorised without additional factor of authentication (AFA) up to Rs 15,000 per transaction.

Transactions above this amount shall be subject to AFA.

Specific Payment Categories

Payment of insurance premiums, subscription to mutual funds, and credit card bill payments may be made without AFA up to Rs 1 lakh per transaction, the central bank said.

The RBI's updated e-mandate framework aims to streamline digital payments and enhance customer convenience. These changes reflect the increasing reliance on recurring online transactions for various services. The central bank's focus remains on balancing ease of use with robust security measures for digital payments.

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