Many Indians rely on recurring payments to manage everything from systematic investment plan (SIP) installments and insurance premiums to credit card bills. However, until recently, there was a major pain point for transactions above ₹15,000 done through cards or UPI: the requirement for a one-time password (OTP). A simple network glitch or a missed notification could lead to a failed transaction, resulting in missed payments and stiff penalties.
The RBI's consolidated e-mandate framework, effective April 21, fixed this by increasing the cap on transactions to up to ₹1 lakh for SIPs, insurance premiums, and automated credit card payments. "Meanwhile, the standard threshold remains at ₹15,000 for everyday subscriptions such as streaming services, utility bills and gym memberships, which will continue to be processed without an OTP.
Mint takes a closer look at the RBI’s revised framework and explains what it means for you.
What is an e-mandate and what has changed?
An e-mandate is a standing digital instruction to your bank or payment platform to automatically debit your account for recurring payments made using UPI, a debit or credit card, or through the electronic national automated clearing house (eNACH) and electronic clearing service (ECS).
Setting one up will still require a one-time authentication via OTP, net-banking password, UPI PIN, or biometric data. But the process is now more standardised, transparent, and customer-controlled than before. Before confirmation, your bank must show you a clear summary of the mandate with a maximum amount, validity period, and your preferred alert channel, to ensure you don't create an e-mandate by accident.
Earlier, any payment above ₹15,000 required OTP verification every single time, except in case of eNACH and ECS, which are typically used for larger transactions, where the limit is decided by the bank.
The new framework raises this cap significantly for specific categories and gives users more control: you can adjust limits, skip individual transactions without cancelling the entire mandate, and opt out at any time, directly from the alert message, if something looks wrong. You will receive a pre-debit alert 24 hours in advance, followed by a post-debit confirmation.
However, retail shopping, FASTag recharges, and the National Common Mobility Card (NCMC)—used for tap-and-go payments across various modes of public transit such as metro, buses, tolls and parking — have been exempted from the pre-debit alert, and wallets will continue to be topped up if balances are lower than a specified minimum threshold.
What if something goes wrong?
To balance this increased convenience with security, the RBI has overhauled its dispute resolution rules. Banks must now include clear instructions on how to file a complaint in every post-debit notification. Reporting speed is critical for recovery:
● Within 3 working days: You are eligible for a full refund.
● 4 to 7 days: You may incur a small cost or partial liability.
● Beyond 7 days: The refund depends entirely on your bank’s internal policy.
Shatrajit Banerji, partner at law firm Cyril Amarchand Mangaldas, noted that customers can now choose how they receive notifications, skip individual payments without ending the mandate, and find grievance redressal details in every transaction alert, saving them the hassle of hunting through emails.
What should you do now?
Review your active e-mandates. Most banking apps list them under settings or payments. Confirm that your alert preferences are set to a channel you actually monitor, whether SMS or email. If you have any mandates on an old number or dormant account, cancel them. If a debit looks wrong, be sure to report it within three working days.