New Delhi [India], April 21 : Customers will now receive alerts at least 24 hours before any automatic payment is deducted from their accounts, as the Reserve Bank of India (RBI) on Tuesday issued the Digital Payments - E-mandate Framework, 2026, to streamline and safeguard recurring transactions.
In a move aimed at preventing unexpected debits, the central bank said, "An issuer shall send a pre-transaction notification to the customer, at least 24 hours prior to the actual charge / debit."
The framework consolidates all existing rules on e-mandates commonly used for subscriptions, utility bills, and SIPs and makes them more transparent and customer-friendly.
To ensure better control, RBI said customers must explicitly approve auto-debit instructions at the time of registration through an additional layer of security. "The mandate shall be registered only after successful validation of additional factor of authentication (AFA)," the RBI said.
The central bank also emphasised flexibility, noting that users can modify or cancel such mandates anytime. "The issuer shall provide the customer with a facility to modify the validity period or withdraw the e-mandate at any point of time," it said.
Further strengthening safeguards, RBI has allowed customers to block individual transactions before they are processed. "The issuer shall provide a customer with a facility to opt-out of any particular transaction or the e-mandate," the framework stated.
On transaction limits, the RBI said recurring payments up to Rs 15,000 can be processed without additional authentication, while higher-value transactions will require user approval.
"All recurring transactions may be authorised without AFA up to ₹15,000 per transaction. Transactions above this amount shall be subject to AFA." it said.
However, for certain critical payments such as insurance premiums, mutual fund subscriptions and credit card bills, the limit has been relaxed.
"Payment of insurance premiums, subscription to mutual funds, and credit card bill payments may be made without AFA up to ₹1,00,000 per transaction," the RBI added.
The framework also mandates that customers be informed after every transaction.
"An issuer shall send a post-transaction notification to the customer," it said, adding that details of grievance redressal must also be included.
Importantly, the RBI clarified that customers will not be charged for using this facility. "No charges shall be levied to the customer for availing the e-mandate facility for recurring transactions," it said.
The new directions replace all earlier circulars on e-mandates, creating a single, comprehensive framework for recurring digital payments in the country.
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