RBI Guidelines on Recurring E-Mandate Transactions
The Reserve Bank of India (RBI) has updated its guidelines for recurring e-mandate transactions, focusing on enhancing convenience and security for consumers.
Key Features of the Revised Guidelines
- Transaction Limits:
- Payments up to Rs 15,000 per transaction do not require an additional factor of authentication (AFA).
- Transactions over Rs 15,000 will still necessitate AFA.
- Insurance premiums, mutual fund subscriptions, and credit card bill payments up to Rs 1 lakh per transaction can be processed without AFA.
- Validity and Flexibility:
- Each e-mandate must have a clearly specified validity period.
- Customers can modify or withdraw e-mandates anytime, with issuers required to communicate these options clearly.
- Transaction Amounts:
- E-mandates can be set for fixed or variable amounts, within RBI-prescribed caps.
- For variable mandates, customers can set a maximum transaction limit.
- Notification Preferences:
- Users can select or change their preferred mode (e.g., SMS or email) for receiving pre-transaction alerts.
- Authentication Requirements:
- Modifications or withdrawals of e-mandates require AFA validation.
- The first transaction under any e-mandate requires AFA approval.
- Pre-Transaction Notifications:
- Issuers must send notifications at least 24 hours before a debit, including details like merchant name, transaction amount, and reference number.
- Pre-transaction alerts are not required for automatic balance replenishments of FASTag and National Common Mobility Card (NCMC).
- Post-Transaction Notifications:
- Must include key details such as merchant information, transaction amount, and grievance redressal mechanisms.
- Dispute Resolution:
- Issuers must establish robust dispute resolution systems.
- Existing guidelines on customer liability for unauthorized transactions apply to e-mandate payments.
- Additional Information:
- No charges will be levied on customers for availing the e-mandate facility.
- Existing card-based mandates may be transferred to reissued cards.
- Acquiring banks must ensure merchant compliance with updated norms.
