{"id":24460,"date":"2025-10-07T16:40:54","date_gmt":"2025-10-07T11:10:54","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=24460"},"modified":"2025-11-06T12:34:52","modified_gmt":"2025-11-06T07:04:52","slug":"rbi-e-mandate-regulations","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/rbi-e-mandate-regulations\/","title":{"rendered":"RBI e-mandate Regulations"},"content":{"rendered":"

Online transactions gained momentum in the post-COVID era when several businesses took to the internet to sell their products. This trend allowed several financial players to develop and introduce online payment applications. The RBI, in a move to make online transactions secure, issued mandates to regulate recurring payments using credit\/debit cards. These e-mandate regulations apply to automated monthly subscriptions like monthly subscriptions, insurance premiums, utility bill payments and similar services.<\/span><\/p>\n

This article discusses some of the prominent RBI e-mandate regulations currently being followed by online subscription-based service providers.<\/span><\/p>\n

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Key Takeaways<\/strong><\/p>\n

With online transactions gaining widespread recognition as one of the primary payment methods, regulatory bodies like the RBI issued certain policies to curb fraud.<\/p>\n

RBI e-mandate regulations were established to keep a check on illegal transactions and to secure recurring transactions for users and merchants.<\/p>\n

These regulations require users to authenticate recurring transactions ranging from \u20b9 5000 to \u20b915000.<\/p>\n

Razorpay has developed payment solutions that comply with RBI e-mandate regulations, making it easy for member merchants to transact securely.<\/p>\n<\/div>\n

Key Provisions of RBI e-mandate Regulations (Effective October 1, 2021)<\/b><\/h2>\n

What Is An E-Mandate?<\/strong><\/h3>\n

E-mandates<\/a> are regular, mandatory deductions. E-mandates refer to standing instructions that enable recurring payments to be auto-debited. It is a digital authorisation granted by cardholders to a merchant via the issuing bank, permitting recurring payments to be automatically debited at specified intervals. It is also called a standing instruction or a recurring payment mandate. RBI e-mandate regulations allow merchants to initiate recurring transactions within a limited range of \u20b95000 to \u20b915000 with just one instance of authentication.<\/span><\/p>\n

The RBI introduced the following e-mandate rules for customer security and overall sanity of online transactions:<\/span><\/p>\n

Additional Factor Authentication:<\/strong><\/h3>\n

Any mandate modification or change requires an additional factor authentication (AFA). This is usually done through an OTP sent to the cardholder\u2019s number for validation.<\/span><\/p>\n

Transaction Limit Without AFA<\/strong><\/h3>\n

Transactions of INR 5000 or below can be processed without AFA after the mandate is registered. For higher amounts, AFA mandate is necessary.<\/span><\/p>\n

Opt-Out Facility<\/strong><\/h3>\n

Customers can opt out of the mandate at any time using a secure link in their notification.<\/span><\/p>\n

Special Categories<\/strong><\/h3>\n

Recurring transactions such as mutual fund subscriptions, insurance premiums, and credit card bill payments require AFA for every transaction above Rs. 1,00,000.<\/span><\/p>\n

Non-compliant Transactions Declined<\/strong><\/h3>\n

Any recurring payments without proper e-mandate registration or failing AFA authorization are declined.<\/span><\/p>\n

Separate e-mandates per subscription<\/strong><\/h3>\n

Each recurring mandate must be set up distinctly for individual subscriptions or services.<\/span><\/p>\n

How Do RBI E-Mandates Work?<\/strong><\/h2>\n

E-mandates are processed in different stages. Here is how the workflow goes;<\/span><\/p>\n

Mandate Registration: <\/b>Customers authorise a recurring payment on the merchant\u2019s platform. This is authenticated using AFA, which is OTP-based, i.e, merchants send an OTP to the customer\u2019s phone number, which is used to validate the mandate.<\/span><\/p>\n

Pre-Debit Notification: <\/b>Customers receive a notification intimating them about the recurring debit.<\/span><\/p>\n

Payment Processing:<\/b> Amounts ranging between \u20b95000 and \u20b915000 are approved for auto-debit without further authentication.\u00a0<\/span><\/p>\n

Authentication For Higher Amounts: <\/b>As per RBI\u2019s regulations, further authentication is required for recurring payments exceeding <\/span>\u20b915000.\u00a0<\/span><\/p>\n

Modification\/Cancellation: <\/b>Users may modify\/cancel e-mandates at any point of time through a secure link in their notifications.<\/span><\/p>\n

Razorpay recognized early on that compliance should not compromise merchant and user experience. Our all-in-one platform supports merchants every step of the way\u2014from mandate registration and authentication<\/a> (AFA) to debit management and real-time notifications.<\/span><\/p>\n

Where Are RBI E-Mandates Applicable?<\/strong><\/h2>\n

The above-mentioned E-mandates are applicable to transactions of high amounts that are to be paid at regular intervals. It covers:<\/span><\/p>\n