<\/p>\n\n\n\n
Mumbai, The Reserve Bank of India (RBI) on Tuesday issued consolidated guidelines for e-mandates in digital payments, mandating an additional factor of authentication (AFA) to enhance the security of recurring transactions.<\/p>\n\n\n\n
The new norms are applicable to all payment system providers and participants handling auto-debit payments across cards, prepaid payment instruments, and the Unified Payments Interface (UPI), covering both domestic and cross-border transactions. The directions have come into effect immediately.<\/p>\n\n\n\n
Under the revised framework, customers opting for the e-mandate facility will have to complete a one-time registration process.<\/p>\n\n\n\n
\u201cThe mandate will only be activated after successful validation of an additional authentication factor, over and above the standard verification process carried out by issuers,\u201d RBI said.<\/p>\n\n\n\n
The central bank also clarified that the first transaction under any e-mandate must mandatorily go through this additional authentication layer.<\/p>\n\n\n\n
To further strengthen safeguards, the RBI said recurring transactions exceeding Rs 15,000 will require additional authentication.<\/p>\n\n\n\n
High-value payments such as insurance premiums, mutual fund subscriptions, and credit card bill payments above Rs 1 lakh will also need this extra layer of verification before processing.<\/p>\n\n\n\n
The framework provides flexibility to users, allowing them to set e-mandates for fixed or variable amounts within limits prescribed by the central bank.<\/p>\n\n\n\n
In the case of variable mandates, issuers must enable customers to define a maximum transaction value.<\/p>\n\n\n\n
Any modification to an existing mandate will require fresh authentication.<\/p>\n\n\n\n
Each e-mandate will come with a defined validity period, and customers will have the option to modify or cancel the mandate at any time.<\/p>\n\n\n\n
The RBI has directed issuers to clearly communicate these features to users during the registration process to ensure transparency.<\/p>\n\n\n\n
Importantly, the central bank clarified that customers will not be charged for availing the e-mandate facility for recurring payments.<\/p>\n\n\n\n
It also stated that payments executed under e-mandates will not be subject to any separate limits or controls set by customers beyond the prescribed framework.<\/p>\n","protected":false},"excerpt":{"rendered":"
Mumbai, The Reserve Bank of India (RBI) on Tuesday issued consolidated guidelines for e-mandates in digital payments, mandating an additional factor of authentication (AFA) to enhance the security of recurring […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,2],"tags":[],"class_list":["post-2280","post","type-post","status-publish","format-standard","hentry","category-display","category-national","has_no_thumb"],"_links":{"self":[{"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/posts\/2280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/newsaxis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2280"}],"version-history":[{"count":1,"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/posts\/2280\/revisions"}],"predecessor-version":[{"id":2281,"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/posts\/2280\/revisions\/2281"}],"wp:attachment":[{"href":"https:\/\/newsaxis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsaxis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsaxis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}