Recurring payments: the RBI e-mandate rules effective from 21 April 2026
Recurring card, PPI and UPI payments need a valid mandate, the prescribed authentication and customer notifications. The ordinary no-AFA ceiling is ₹15,000 per transaction; three specified payment categories have a ₹1 lakh ceiling.
Finin2min · Updated 26 October 2026
Rules, scope and practical implications
Scope and commencement
The Digital Payments – E-mandate Framework, 2026 took effect immediately on 21 April 2026. It applies to payment system providers and participants processing domestic or cross-border recurring transactions using cards, prepaid payment instruments (PPIs) or UPI. It consolidates and repeals the eight earlier circulars or clarifications listed in paragraph 11; the new framework is the starting point for those recurring-payment controls.
Sources: RBI Digital Payments - E-mandate Framework, 2026 — paragraphs 1–3, 11
Registration, duration and customer control
Registration requires successful additional factor of authentication (AFA), in addition to the issuer’s normal registration process. The mandate must specify its validity period. Customers must be told how to change that period or withdraw the mandate at any time. For a variable mandate, the customer must be able to specify the maximum recurring amount, within the RBI ceiling. Modifying or withdrawing an existing mandate also requires AFA.
Sources: RBI Digital Payments - E-mandate Framework, 2026 — paragraphs 4(a)–(e)
The first transaction still needs authentication
The first transaction under a mandate requires AFA. If it occurs together with registration, the AFA validation can be combined. The relaxation for eligible later recurring debits does not make mandate registration or the first transaction authentication-free. Paragraph 5(b) separately says e-mandate payments are not subject to other limits or controls set by the customer; the mandate’s own specified amount and the RBI recurring-transaction rules still matter.
Sources: RBI Digital Payments - E-mandate Framework, 2026 — paragraphs 4(c), 5(a)–(b), 8
Give at least 24 hours’ notice before debit
The issuer must send the pre-transaction notification at least 24 hours before the actual charge or debit. It must identify the merchant, amount, debit date and time, mandate reference and reason for debit. The customer must be able to choose or change the available notification mode, such as SMS or email. A customer can opt out of an individual transaction or the mandate; the issuer validates the opt-out through AFA and sends an intimation.
Sources: RBI Digital Payments - E-mandate Framework, 2026 — paragraphs 4(d), 6(a)–(c)
The FASTag and NCMC exception is specific
A pre-transaction notification is not required for mandates registered to auto-replenish FASTag or National Common Mobility Card balances. This is the paragraph 6(d) exception to the advance notification requirement. It does not remove the framework’s other applicable mandate, authentication, post-transaction notification or customer-protection requirements.
Sources: RBI Digital Payments - E-mandate Framework, 2026 — paragraphs 4–8, 6(d)
Apply the two per-transaction AFA ceilings correctly
A later recurring transaction may be authorised without AFA up to and including ₹15,000. Above ₹15,000, AFA is required unless the specified higher-category relaxation applies. Insurance premiums, mutual-fund subscriptions and credit-card bill payments may be made without AFA up to and including ₹1 lakh per transaction. A general merchant subscription does not receive the ₹1 lakh relaxation simply because a mandate exists.
Sources: RBI Digital Payments - E-mandate Framework, 2026 — paragraphs 8(a)–(b)
Confirm the debit and provide a grievance route
After the transaction, the issuer must notify the customer of the merchant, amount, debit date and time, transaction and mandate references, reason for debit and grievance-redressal details. The issuer must provide an appropriate dispute-redressal system. RBI’s instructions limiting customer liability for unauthorised transactions also apply to recurring e-mandate transactions.
Sources: RBI Digital Payments - E-mandate Framework, 2026 — paragraphs 7, 9
Charges, replacement cards and merchant compliance
The customer cannot be charged for using the e-mandate facility for recurring transactions. Existing card mandates may be mapped to reissued cards. Acquirers must ensure that their onboarded merchants comply with the framework. The no-charge rule concerns the e-mandate facility; it should not be presented as a blanket statement that every underlying service or purchase is free.
Sources: RBI Digital Payments - E-mandate Framework, 2026 — paragraphs 10(a)–(c)
Practical illustration and assumptions
Assume a registered variable mandate permits a monthly merchant subscription of up to ₹20,000. Its first debit needs AFA. A later ordinary subscription debit of ₹18,000 also needs AFA because it exceeds ₹15,000. A later insurance-premium debit of ₹80,000 can fall within the specified ₹1 lakh no-AFA relaxation, subject to the valid mandate and other controls. Unless the particular FASTag/NCMC exception applies, the issuer must still send the advance notification at least 24 hours before debit.
Questions answered
Does the ₹1 lakh ceiling apply to every recurring payment?
No. Paragraph 8(b) specifies insurance premiums, mutual-fund subscriptions and credit-card bill payments. The ordinary ceiling remains ₹15,000 per transaction.
Can a customer cancel only one proposed debit?
Yes. Paragraph 6(c) requires an opt-out facility for a particular transaction or the mandate, validated through AFA with an intimation.
Does FASTag auto-replenishment escape all e-mandate controls?
No. Paragraph 6(d) specifically removes the pre-transaction notification requirement; the other applicable framework controls continue.
Official sources and editions
Illustrations are hypothetical and depend on the stated assumptions. Official blank formats and guidance are identified separately from completed reports.