RBI Digital Payments Rule: RBI has implemented a new E-mandate rule to make digital payments secure, in which auto payments up to Rs 15,000 will be without OTP, and OTP will be required for payments above that amount.

No need to enter OTP for auto-payments up to Rs 15,000

RBI Digital Payments Rule: The Reserve Bank of India (RBI) has issued new rules related to e-mandates to make digital payments more secure. These guidelines, called the Digital Payment-E-mandante Framework 2026, have been implemented immediately. Under these guidelines, security procedures such as Additional Factor Authentication (AFA), or OTP, have been mandated for recurring transactions.

What is e-mandate?

Talking about e-mandates, e-mandates are a feature where a customer authorizes a payment in advance, which automatically deducts the money at a specified time. This amount can be fixed or variable, but there is an option to set a maximum limit for the variable amount.

When will AFA (OTP) be required?

• Payment up to Rs 15,000 can be made without OTP on every transaction.
• If you make a transaction of more than Rs 15 thousand then AFA (OTP) will be necessary.
• At the same time, for insurance, mutual fund and credit card bills, payment without OTP will be allowed up to Rs 1 lakh.

Notifications and controls

• Please note that the customer will be informed at least 24 hours before every transaction.
• This notification will contain all the information like merchant name, amount, date and time.
• The customer can choose the option of receiving notifications through SMS or email.

What are the rules for changes and cancellations?

• If you want to change or stop e-mandate, AFA will be required for that.
• The customer can opt-out of any transaction.
• The opt-out process will also be validated by AFA.

How will the first transaction happen?

• If we talk about the first transaction, it will always be with AFA.
• However, if the payment is made at the time of registration, then both the processes can be completed simultaneously.

In which cases notification is not necessary?

For e-mandates registered for auto-replenishment of FASTag and National Common Mobility Card (NCMC) balance, no pre-transaction intimation is required.