Scope

What is an E-manadate?

What are the new guidelines for the RBI regulatory changes in India?

Summary

E-Mandate is a digital payment service initiated by the Reserve Bank of India(RBI) for customers to virtually authorize merchants to collect recurring payments primarily using debit or credit cards.

All financial institutions including banks, payment solution providers, and integrators are actively working to ensure adherence with the updated guidelines prescribed by the Reserve Bank of India(RBI). Chargebee is working with Stripe to identify and make updates necessary within the deadlines from RBI.

What are the new Guidelines?

The following guidelines are prescribed by the RBI:

• Process e-mandate for the set up of recurring transactions with Additional Factor Authentication (AFA) during e-mandate registration, modification and revocation, and first transaction.

• The AFA requirement for transactions is now increased from INR 2000 to INR 5000. This means that AFA is mandatory only for transactions that exceed INR 5000.

• Banks must inform the customer at least 24 hours before the actual debit/charge of the customer and process payments upon receipt of confirmation that the pre-debit notification has been sent.

• Banks must also provide a post debit notification which includes the name of the merchant, transaction amount, date/time of debit, reference number of transaction / e-mandate, the reason for debit.

• Banks must allow the cardholder to withdraw an e-mandate at any point in time and immediately stop all recurring payments.

• No charges can be levied to the customer for the creation or modification of e-mandates.

We recommend reviewing RBI's Notifications for the latest updates.

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