Mumbai, April 21: The Reserve Bank of India (RBI) has introduced new and stringent rules for e-mandates in digital payments. Effective immediately, additional authentication (Additional Factor of Authentication – AFA) will be mandatory for auto-debit transactions exceeding ₹15,000 to enhance security for recurring payments.
These regulations apply to all payment system providers and entities handling auto-debit payments via cards, prepaid payment instruments, and UPI, covering both domestic and international transactions.
Customers wishing to utilize the e-mandate feature must complete a one-time registration process. According to the RBI, “The mandate will only be activated upon successful completion of additional authentication alongside standard verification.”
The central bank clarified that the first transaction under any e-mandate will also require additional authentication. To further bolster security, every auto-debit transaction exceeding ₹15,000 will necessitate this extra verification.
Moreover, for significant payments over ₹1 lakh, such as insurance premiums, mutual fund investments, and credit card bills, additional verification will also be required.
This new system offers customers flexibility, allowing them to set e-mandates for fixed or variable amounts within specified limits. If the amount is subject to change, customers can establish a maximum limit.
Any modifications to existing mandates will require re-authentication. Each e-mandate will have a defined validity period, and customers can change or cancel it at any time.
The RBI has mandated that all these features be clearly communicated to customers during the registration process to ensure transparency. Importantly, customers will not be charged any fees for using the e-mandate facility.
Additionally, the RBI stated that no extra limits or controls will be imposed by customers on payments made under e-mandates; operations will adhere strictly to the established rules.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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