“Reserve Bank of India Updates E-Mandate Framework to Boost Digital Payment Convenience”

RBI Updates E-Mandate Rules, Raises No-OTP Limit for Auto-Debits to ₹15,000 The Reserve Bank of India (RBI) has revised its e-mandate framework to make recurring digital payments smoother and more user-friendly by allowing auto-debit transactions of up to ₹15,000 without requiring a one-time password (OTP) after the initial approval. This means once a user registers an e-mandate with authentication, subsequent recurring payments such as subscriptions, utility bills, SIPs, and insurance premiums within this limit will be processed automatically without repeated verification, reducing payment failures due to missed OTPs. However, transactions above ₹15,000 will still require additional authentication for security. Notably, the RBI has provided an exception for certain categories like insurance premiums, mutual fund investments, and credit card bill payments, where auto-debits of up to ₹1 lakh can be processed without OTP. The updated rules also ensure that customers receive prior notifications before debits and retain the flexibility to modify or cancel mandates anytime, aiming to strike a balance between convenience and safety in digital payments.