The Reserve Bank of India rolled out game-changing e-mandate regulations on Tuesday, targeting vulnerabilities in recurring payment systems. From now on, auto-debits surpassing Rs 15,000 demand additional factor authentication (AFA), a direct response to increasing unauthorized transaction risks.
Applicable to all entities managing card, PPI, and UPI auto-payments—whether domestic or cross-border—these rules kick in instantly. Customers must register once for e-mandates, but activation hinges on dual verification: standard checks plus AFA.
Every inaugural transaction under an e-mandate requires this heightened scrutiny. For sums over Rs 15,000, AFA is non-negotiable for each debit. Larger payments, including those above Rs 1 lakh for insurance, mutual funds, or credit card dues, follow suit with mandatory extra checks.
Flexibility is built-in: set mandates for fixed or variable amounts capped at a customer-defined maximum. Any mandate amendment prompts fresh authentication. Each has a set expiry, with easy options to edit or revoke.
Providers are obligated to furnish crystal-clear information on these features at signup, promoting informed consent. E-mandate usage remains free of charge, operating seamlessly within regulatory boundaries without extra restrictions.
As digital wallets and UPI dominate India’s payment landscape, RBI’s overhaul promises to slash fraud incidents, empowering users with greater control and peace of mind over their recurring finances.
