RBI raises e-mandate limit for recurring payments to ₹1 lakh
No longer current — withdrawn, no replacement on file yet
RBI's own words: “With the issue of these directions, the instructions/guidelines contained in the following circulars...stand repealed” — RBI/DPSS/2026-27/396
Source: Reserve Bank of India · RBI/2023-2024/88 · issued 12 Dec 2023 · ~1 min read
Quick answerRBI has increased the per-transaction limit for e-mandates on recurring payments from ₹15,000 to ₹1,00,000 for mutual fund subscriptions, insurance premiums, and credit card bill payments, effective immediately.
The rule, in the simplest words
The RBI (India's central bank) raised the limit for automatic recurring payments from ₹15,000 to ₹1,00,000 per transaction.
This new higher limit applies only to three types of payments: buying mutual funds (investment pools), paying insurance premiums (regular insurance costs), and paying credit card bills.
Banks can now process these bigger recurring payments without asking for extra approval (AFA - an extra password or OTP) each time.
All banks and payment companies must update their computer systems to allow this new limit and follow all other rules from the June 2022 circular.
How it plays out — a real example
Priya, a credit & lending officer in Indore, updates her bank's system to allow a customer's monthly mutual fund investment of ₹50,000 to be deducted automatically without needing an OTP each time. She also checks that the bank still follows all the safety rules from the earlier RBI circular, so the customer enjoys a smooth, hassle-free payment experience.
What changed
The per-transaction limit for processing e-mandates without additional factor of authentication (AFA) for recurring transactions has been raised from ₹15,000 to ₹1,00,000. This applies specifically to three categories: mutual fund subscriptions, insurance premium payments, and credit card bill payments.
What it means for you
Banks and payment system operators can now process higher-value recurring transactions for these categories without requiring AFA for each subsequent transaction, reducing friction for customers. This change is expected to boost digital recurring payments in these segments, but lenders must ensure compliance with existing conditions from the June 2022 circular.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update system limits for e-mandate processing to allow up to ₹1,00,000 per transaction for the specified categories.
Review and ensure all conditions from circular CO.DPSS.POLC.No.S-518/02.14.003/2022-23 are still being met.
Communicate the revised limit to relevant operational teams and customer-facing staff.
Monitor transaction patterns to detect any potential misuse or fraud under the higher limit.
Who it affects
Scheduled Commercial Banks, Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Payments Banks, Small Finance Banks, Local Area Banks, Non-bank Prepaid Payment Instrument issuers, Authorised Card Payment Networks, National Payments Corporation of India
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this new limit apply to all recurring transactions?
No, it applies only to e-mandates for mutual fund subscriptions, insurance premium payments, and credit card bill payments. Other categories remain at the earlier limit of ₹15,000.
When does this circular take effect?
The circular is effective immediately from December 12, 2023, the date of issuance.
Do we still need to follow conditions from the June 2022 circular?
Yes, the conditions listed in the earlier circular (CO.DPSS.POLC.No.S-518/02.14.003/2022-23) continue to apply for processing these e-mandates.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “With the issue of these directions, the instructions/guidelines contained in the following circulars...stand repealed”
Repealed byRBI/2025-26/79 — Master Directions
RBI’s words: “CO.DPSS.POLC.No.S-882/02.14.003/2023-24 dated December 12, 2023”
📜 Read the original circular — full text as issued by RBI
RBI/2023-2024/88
CO.DPSS.POLC.No.S-882/02.14.003/2023-24
December 12, 2023
The Chairman / Managing Director / Chief Executive Officer
All Scheduled Commercial Banks, including Regional Rural Banks /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks / Payments Banks /
Small Finance Banks / Local Area Banks /
Non-bank Prepaid Payment Instrument issuers / Authorised Card Payment Networks /
National Payments Corporation of India
Madam / Dear Sir,
Processing of e-mandates for recurring transactions
A reference is invited to our circular CO.DPSS.POLC.No.S-518/02.14.003/2022-23 dated June 16, 2022 in terms of which relaxation in Additional Factor of Authentication (AFA) was permitted while processing e-mandates / standing instructions on cards, Prepaid Payment Instruments and Unified Payments Interface, for subsequent recurring transactions with values up to ₹15,000/-, subject to conditions listed therein.
2. In this regard, as announced in the Statement on Developmental and Regulatory Policies dated December 08, 2023 , it has been decided to increase the limit from ₹15,000/- to ₹1,00,000/- per transaction for the following categories: (a) subscription to mutual funds, (b) payment of insurance premiums, and (c) credit card bill payments.
3. This circular is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007), and shall come into effect immediately.
Yours faithfully,
(Gunveer Singh)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-2024/88 · issued 12 Dec 2023. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12570&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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