The Reserve Bank of India has introduced updated guidelines for the e mandate framework, allowing automatic recurring payments of up to 15000 without the need for a one time password. The move is aimed at enhancing convenience for users who rely on digital payment systems for regular transactions such as subscriptions, utility bills, and other recurring expenses.
Under the revised framework, transactions within the specified limit can be processed automatically without requiring additional authentication each time. Previously, recurring payments above a lower threshold required users to complete an OTP based verification process. The new limit is expected to reduce interruptions and streamline the payment experience.
Despite the relaxation, the Reserve Bank of India has retained several safeguards to ensure user security. Customers will continue to receive advance notifications before a recurring payment is processed. These alerts provide details of the transaction, including the amount, date, and merchant information, allowing users to review and take action if needed.
Users also retain full control over their e mandates. They can modify, pause, or cancel mandates through their bank or payment service provider. This ensures that individuals can manage their subscriptions and recurring payments according to their preferences.
The updated guidelines apply to a wide range of digital payment methods, including debit cards, credit cards, and prepaid instruments. The framework is designed to support the growing use of digital payments in India, where recurring transactions have become increasingly common across various services.
Financial experts note that the change is likely to benefit both consumers and businesses. For consumers, it simplifies the process of managing regular payments, reducing the need for repeated authentication. For businesses, it can lead to improved payment success rates and reduced transaction failures.
At the same time, the emphasis on security remains a key aspect of the framework. The requirement for advance alerts and the ability to opt out provide an additional layer of protection. These measures are intended to prevent unauthorised transactions and ensure transparency in the payment process.
The decision reflects the broader approach of the Reserve Bank of India to balance convenience with security in digital financial services. As digital transactions continue to grow, regulatory frameworks are being updated to address changing user needs while maintaining trust in the system.
The revised e mandate rules are expected to encourage greater adoption of digital payment solutions, particularly for recurring transactions. Services such as streaming platforms, insurance premiums, and utility payments are likely to benefit from the smoother process.
Customers are advised to stay informed about their active mandates and review notifications carefully. While the system is designed to be secure, awareness and regular monitoring remain important for preventing issues.
Overall, the update by the Reserve Bank of India marks a step towards making digital payments more efficient and user friendly. The combination of higher limits and continued safeguards reflects an effort to support the evolving needs of the financial ecosystem.