Receive 24-Hour Advance Notification for International Auto-Payments: Users Can Stop Payments If They Wish; RBI Revises E-Mandate Rules

You can now stop automatic payments for subscriptions to international apps—such as Netflix and YouTube—at any time. The Reserve Bank of India (RBI) has revised the regulations governing automatic payments made to foreign companies.

Now, if you set up an ‘e-mandate’—the system for recurring monthly deductions—for any international service using your card or UPI, you will receive a notification 24 hours prior to the actual payment. To facilitate this, banks are required to implement ‘Additional Factor Authentication’ (AFA), which involves verification via a One-Time Password (OTP).

The objective of this initiative is to safeguard users against digital fraud and grant them greater control over their financial transactions.

Transaction Limits: Payments Up to ₹15,000 Without Additional Authentication

The RBI has also established specific limits for e-mandate transactions. Customers now have the option to decide whether a fixed amount should be deducted each time, or if they prefer to set a maximum transaction limit. If a variable limit option is chosen, the bank is required to seek confirmation from the user regarding the maximum permissible value.

Furthermore, for any modifications to an existing e-mandate—or for its cancellation—it is now mandatory for the bank to conduct a fresh verification process with the user.

Up to ₹15,000: For standard e-mandate transactions, the limit is capped at ₹15,000 per transaction.

Up to ₹1 Lakh: For specific payments such as credit card bills, insurance premiums, and mutual fund contributions, this limit is extended up to ₹1 lakh. Any transaction exceeding this amount will necessitate additional verification.

Full Refund Available If Fraudulent Transactions Are Reported Within 3 Days

The RBI’s regulations regarding customer liability in cases of fraudulent transactions will now also extend to e-mandates.

Zero Liability: In instances where the bank is found to be negligent, or if a fraudulent transaction is reported within three working days, the user will bear no liability and will be entitled to a full refund. Limited Liability: For delays ranging from 4 to 7 days, the liability may range from ₹5,000 (for savings accounts) up to ₹25,000 (for credit cards). For reporting made after 7 days, the decision will be determined in accordance with the bank’s policy.

No Extra Charges: E-Mandate Facility to be Provided Free of Cost

The RBI has clarified that banks cannot levy any charges on customers for providing the e-mandate facility for recurring transactions. Furthermore, if your card is reissued after its expiration, the existing e-mandates can be mapped to the new card.