RBI Streamlines E-Mandate Framework for Reissued Cards

The Reserve Bank of India (RBI) has introduced significant updates to its e-mandate framework, permitting card issuers to map existing e-mandates onto reissued cards. Announced on Tuesday, these changes aim to simplify digital payment processes and strengthen consumer protections.

Under the new guidelines, the RBI instructed issuers to furnish detailed grievance redressal options in post-transaction notifications. Additionally, users will not incur charges for utilizing the e-mandate facility for recurring transactions. The RBI emphasized that these improvements reflect feedback from stakeholders.

Notably, recurring transactions below Rs 15,000 can be authorized without an additional factor of authentication (AFA). However, transactions exceeding this limit still require AFA. For payments such as insurance premiums, mutual fund subscriptions, and credit card bill payments, the threshold without AFA is raised to Rs 1 lakh per transaction.