What changed
RBI has consolidated all previous e-mandate circulars into a single, comprehensive framework called the Digital Payments – E-mandate Framework, 2026, effective immediately. The framework mandates additional factor of authentication (AFA) for e-mandate registration, modifications, withdrawals, and the first transaction, and requires issuers to send pre-transaction notifications at least 24 hours before each debit. It also introduces a customer opt-out facility for any specific transaction or the entire e-mandate, validated via AFA.
What it means for you
Banks and payment system providers must update their systems to ensure AFA is applied for all e-mandate lifecycle events, including registration, modification, withdrawal, and first transactions. Issuers need to implement a 24-hour pre-transaction notification mechanism and a customer opt-out feature, which will increase operational complexity but enhance customer control and security. The consolidation simplifies compliance by replacing multiple circulars with a single directive, reducing ambiguity for lenders.
What you must do
- Update e-mandate registration and processing systems to enforce AFA for registration, modifications, withdrawals, and first transactions.
- Implement a pre-transaction notification system that sends alerts at least 24 hours before each debit, including merchant name, amount, date/time, and e-mandate reference.
- Provide customers with an opt-out facility for any transaction or the entire e-mandate, validated via AFA, and ensure clear communication of this option at registration.
- Review and align internal policies with the consolidated framework, repealing any conflicting prior circulars.
Who it affects
All Payment System Providers (PSPs), All Payment System Participants (issuers, acquirers), Banks issuing cards, PPIs, or UPI-based recurring payments, Merchants offering e-mandate services
Does the new framework apply to cross-border recurring transactions?
Yes, the framework applies to both domestic and cross-border recurring transactions using cards, PPIs, or UPI.
Are there any exemptions from the pre-transaction notification requirement?
Yes, pre-transaction notifications are not required for e-mandates registered to auto-replenish balances of FASTag and National Common Mobility Card (NCMC).
What happens if a customer opts out of a transaction after receiving the pre-transaction notification?
The issuer must validate the opt-out using AFA and send an intimation to the customer. The transaction will not be processed.