RBI Digital Payments – E-Mandate Framework, 2026: Consolidated Directions Explained
The Reserve Bank of India has issued a comprehensive and updated framework titled “Digital Payments – E-mandate Framework, 2026”, which brings all earlier instructions on e-mandates under a single set of directions. These directions, issued under the Payment and Settlement Systems (PSS) Act, 2007, are effective immediately and apply across the digital payments ecosystem for recurring transactions.
This article presents a structured, practitioner-focused explanation of the framework, its legal basis, scope, operational requirements, and impact on issuers, acquirers, payment system providers, merchants, and assessees using recurring payment facilities.
Statutory Basis and Scope of the Directions
Legal Authority under the PSS Act, 2007
The Reserve Bank of India has invoked its powers under:
- Sections 10(2) and 18 of the Payment and Settlement Systems (PSS) Act, 2007
to consolidate all circulars related to e-mandates and to issue a single, uniform set of directions governing:
“Digital Payments – E-mandate Framework, 2026”
RBI records its satisfaction that issuance of these directions is necessary and expedient in the public interest, thereby reinforcing the binding nature of the framework on all regulated entities within its purview.
Immediate Effectiveness
- The directions are in force from the date of issue i.e., April 21, 2026.
- No transitional period has been prescribed; compliance is expected forthwith.
Entities and Transactions Covered
Who Must Comply?
The framework is addressed to:
- Payment System Providers (PSPs)
- Payment System Participants
These collectively include, among others:
- Card issuers and card networks
- UPI participants (banks and third-party app providers)
- PPI issuers (wallets, prepaid cards, etc.)
- Acquirers and Payment Aggregators to the extent specified
Types of Transactions Covered
The directions specifically apply to:
- Recurring transactions (standing instructions / auto-debit arrangements)
- Domestic and cross-border payments conducted:
- Through cards
- Via UPI
- Using PPIs
Thus, any recurring digital payment arrangement—whether for subscriptions, utilities, insurance, investments, or other services—routed through the above instruments falls under this unified framework.
Key Definitions and Cross-Referencing
Use of Existing RBI Definitions
For consistency, the terms:
- ‘authentication’
- ‘factor of authentication’
- ‘issuer’
- ‘merchant’
will carry the same meaning as assigned in:
- Reserve Bank of India (Authentication mechanisms for digital payment transactions) Directions, 2025 dated September 25, 2025; and
- Master Direction on Regulation of Payment Aggregator (PA) dated September 15, 2025.
This cross-linking ensures that all digital payment participants apply uniform standards to authentication and role definitions across different digital payment frameworks.
E-Mandate Registration and Revocation
One-Time Registration with AFA
Any assessee wishing to avail e-mandate facilities must go through:
- A one-time registration process for each e-mandate.
- The e-mandate must be registered only after successful validation of an additional factor of authentication (AFA), in addition to the usual issuer-specific onboarding or KYC processes.
Note: AFA is mandatory at the registration stage and cannot be bypassed.
Mandate Validity and Modification
Each e-mandate registered by the issuer must:
- Clearly specify the validity period of the mandate.
- Provide the customer with an unrestricted facility to:
- Modify the validity period; or
- Completely withdraw (revoke) the e-mandate at any time.
Issuers must explicitly notify the customer at the time of registration about:
- The existence of this modification and withdrawal facility; and
- How it can be utilised.
Fixed vs Variable E-Mandates
E-mandates may be structured as:
- Fixed amount mandates – where every recurring transaction is for a predetermined, constant amount.
- Variable amount mandates – where the transaction amount can fluctuate, subject to: