RBI tweaks e-mandates for digital payments

The Reserve Bank On Tuesday issued consolidated guidelines for e-mandates for digital payments, making an additional factor of authentication mandatory for processing such transactions. The central bank also mandates issuers that customers can’t be charged for availing of the e-mandate facility for recurring payments.

The new framework applies to all payment system providers and participants handling recurring payments, both domestic and cross-border, through credit/debit cards, prepaid payment instruments, or using UPI with immediate effect, the central bank said in the direction.