Reserve Bank of India Issues Consolidated Directions on Digital Payments E-Mandate Framework for 2026
Why it matters
The Reserve Bank of India issued these consolidated directions to streamline the governance of recurring payment instructions given by customers. By merging multiple circulars issued since 2019, the 2026 framework provides a single point of reference for Payment System Providers (PSPs) and banks. The consolidation reflects the growing scale of the subscription economy in India and the need for robust consumer protection measures against unauthorized debits.
A critical component of these directions is the requirement for Additional Factor of Authentication (AFA) during the registration of the e-mandate and for the first transaction. The framework also clarifies the limits for transactions that do not require AFA for subsequent debits, which remains capped at specific thresholds for general services while offering higher limits for certain categories like insurance premiums or education fees. The consolidation is intended to reduce compliance ambiguity for new FinTech entities entering the recurring payments space.
| Regulatory Action | Details |
|---|---|
| Effective Date | Immediate (April 21, 2026) |
| Primary Requirement | Additional Factor of Authentication (AFA) for registration |
| Applicable Entities | Banks, Card Networks, and PPI Issuers |
| Objective | Securing recurring digital payment transactions |
Glossary
Term: E-mandate. A digital authorization given by a customer to their bank to allow a merchant to deduct recurring payments from their account.
Term: AFA. Additional Factor of Authentication, a security process that requires more than one way to verify a user's identity.