RBI Updates E‑Mandate Rules for Cards, Raises AFA Thresholds

The Reserve Bank of India has issued consolidated directions governing the e‑mandate framework for digital payments. The revised instructions aim to address operational issues flagged by stakeholders and improve customer convenience.

Key changes include flexibility for card reissuance, revised authentication limits, and enhanced consumer protection measures. The updated framework applies to recurring transactions across cards, wallets, and other supported payment instruments.

Mapping E‑Mandates To Reissued Cards

The RBI has allowed card issuers to map existing e‑mandates to reissued debit or credit cards. This change ensures that recurring transactions continue without disruption when a card is replaced due to expiry, damage, or security reasons. Earlier, customers often had to re‑register mandates after card reissuance, leading to payment failures. The new rule reduces friction for subscriptions and standing instructions linked to cards.

Revised Authentication Limits for Recurring Payments

Under the updated framework, recurring transactions may be processed without additional factor of authentication up to ₹15,000 per transaction. Any recurring payment above this threshold will require AFA at the time of debit.

However, specific categories have been provided higher limits to reduce operational inconvenience. Payments towards insurance premiums, mutual fund subscriptions, and credit card bill payments can be executed without AFA up to ₹1 lakh per transaction.

Charges And Merchant Compliance Requirements

The RBI has clarified that customers cannot be charged for availing the e‑mandate facility for recurring transactions. This reinforces the principle that registration and operation of mandates should not impose additional financial burden on users.

Acquirers have been directed to ensure that all onboarded merchants comply with the central bank’s e‑mandate instructions. Responsibility for merchant adherence rests with the acquiring payment service providers.

Strengthened Grievance Redressal Framework

Issuers are required to put in place an appropriate dispute redressal system for e‑mandate related issues. Customers must be informed of grievance redressal mechanisms through post‑transaction notifications.

RBI instructions on limiting customer liability in unauthorised electronic transactions will also apply to recurring payments under e‑mandates. This aligns recurring debits with existing consumer protection safeguards in digital payments.

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Conclusion

The consolidated e‑mandate directions aim to streamline recurring digital transactions while improving customer protection. Allowing mandate continuity on reissued cards addresses a key operational pain point.

Revised authentication thresholds balance transaction security with ease of use for high‑frequency payments. Overall, the framework reflects RBI’s effort to strengthen the reliability and efficiency of India’s digital payments ecosystem.

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