New Delhi: The Reserve Bank of India (RBI) on Tuesday permitted card issuers to map existing e-mandates to reissued cards, a move aimed at enhancing convenience for users of recurring digital payments.
The decision is part of the central bank’s updated consolidated directions on digital payments governing the e-mandate framework.
Relief for Users of Recurring Payments
With this change, customers will no longer need to re-register mandates for subscriptions, utility bills, or other recurring payments when their debit or credit cards are reissued.
The move is expected to streamline digital transactions and reduce disruptions caused by card renewals or replacements.
No Charges on E-Mandate Facility
The Reserve Bank of India has clarified that no charges will be levied on customers for availing the e-mandate facility for recurring transactions.
Additionally, acquiring banks have been directed to ensure that merchants onboarded by them comply with the prescribed norms.
Stronger Grievance Redressal Mechanism
To enhance customer protection, the RBI has mandated that issuers must include grievance redressal details in post-transaction notifications sent to customers.
The central bank also directed issuers to establish robust dispute resolution systems, allowing users to easily lodge complaints related to recurring transactions.
Customer Protection Norms Extended
The updated framework extends RBI’s existing guidelines on limiting customer liability in cases of unauthorised transactions to recurring payments under e-mandates.
This ensures that customers are safeguarded against fraudulent or unauthorised debits.
AFA-Free Transactions Up to ₹15,000
The RBI has allowed recurring transactions of up to ₹15,000 per transaction to be processed without additional factor authentication (AFA), provided they are pre-approved through e-mandates.
This is expected to improve user experience while maintaining necessary security standards.
Based on Stakeholder Feedback
According to the Reserve Bank of India, the revised directions have been issued after considering feedback from various stakeholders, including banks, payment service providers, and customers.
Boost to Digital Payments Ecosystem
The latest changes are expected to strengthen India’s digital payments ecosystem by balancing ease of use with enhanced consumer protection.
By simplifying processes and improving transparency, the RBI aims to encourage wider adoption of automated recurring payment systems across the country.
