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Rbi Card Mandate Guidelines

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Frequently Asked Questions

Find answers to frequently asked questions about RBI guidelines on Subscriptions MandateHQ.

  1. What are the new RBI guidelines on Recurring payments via Card?

    Following are the new RBI guidelines on Recurring payments via Card:

    • Additional Factor of Authentication (AFA) must be made mandatory for all recurring transactions above ₹5,000 on debit cards, credit cards and other prepaid instruments.
    • In case of subsequent automated debits without AFA, the cardholder should get a pre debit notification at least 24 hrs in advance. The notification must contain all information regarding the upcoming debit.
    • Cardholders should have the option to cancel or modify the mandate at any point in time.

  2. Is there a maximum and minimum amount limit for processing recurring transactions through this solution?

    Yes. The maximum limit to process card-based mandates is ₹5,000, and the minimum limit is ₹1.

  3. What will change for businesses in India on account of these RBI Guidelines?

    Businesses in India will have the following changes:

    • Mandate HQ is a plug-and-play API-based solution for issuing banks in India to comply with the RBI guidelines.
    • Razorpay Subscriptions will automatically be integrated with MandateHQ. Businesses can continue onboarding customers and accept subscription payments seamlessly without any additional integration efforts on their end.

  4. How many banks have partnered with MandateHQ?

    Razorpay's goal is to integrate MandateHQ with more than 50 banks in the next 12 months. As the adoption of the product increases, we expect even the smallest of banks from India's hinterlands to support their offerings by enabling recurring payments to millions of first-time digital banking customers and businesses while complying with RBI guidelines.

  5. What are the features embedded in the solution to make it safe and secure for the end consumer?

    Following are the features embedded in the solution:

    • The solution is PCI DSS Compliant - Highest level.
    • Adequate risk and fraud checks.
    • Support for OTP verification for all significant actions such as register, update and cancel a mandate and so on.
    • Support for pre-debit and post-debit notification to inform consumers about the debits.
    • Validation checks to make sure that businesses are debiting payment as per the rule set by the customer.

  6. How can banks comply with RBI guidelines and integrate with MandateHQ within a short period?

    Razorpay’s solution enables banks to support recurring payments in 7 to 10 business days.

  7. How is Razorpay planning to get businesses to comply with this?

    MandateHQ and issuing banks are ensuring compliance with RBI guidelines. There is no effort for businesses to comply with these guidelines. They will be able to use a fully compliant system without any changes.

  8. How will MandateHQ benefit the businesses? What would be the most significant advantage for them from a CapEx perspective?

    MandateHQ will ensure that businesses can continue focusing on their business, and Razorpay will ensure compliance with the RBI guidelines.

  9. What are the benefits for the cardholder?

    Following are some of the benefits for the cardholder:

    • Cardholders will have transparency on what, why, when and how they will be charged.
    • Cardholders will have an interface to view and manage their mandates end-to-end. From keeping track of the debit trail to updating an existing mandate, multiple features are supported via MandateHQ.

  10. How does the new RBI guidelines affect my existing mandates?

    Razorpay MandateHQ allows issuers and businesses to migrate their existing mandate into the new framework. This migration will ensure business continuity.

  11. Does the end customer have to pay any charges to use the MandateHQ?

    No. The end customers do not have to pay any amount to use the MandateHQ.

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