As of my knowledge cutoff in September 2021, the Reserve Bank of India (RBI) has introduced the e-mandate regulation to facilitate electronic payments in India. The e-mandate regulation allows individuals to set up recurring payments or automatic debits for services such as utility bills, subscriptions, insurance premiums, etc., using their debit cards, credit cards, or digital payment methods.
The e-mandate regulation aims to simplify and streamline the process of recurring payments, making it more convenient for consumers and businesses alike. Prior to the introduction of e-mandates, recurring payments often required submitting physical forms or providing written consent for each transaction. The new regulation enables individuals to authorize recurring payments electronically, eliminating the need for manual paperwork and reducing administrative burdens.
Under the e-mandate regulation, customers can provide consent for recurring payments by validating their identity through a two-factor authentication process. This typically involves providing a one-time password (OTP) sent to the registered mobile number or using biometric authentication methods such as fingerprints or iris scans.
It’s important to note that regulations and policies may evolve over time. Therefore, for the most up-to-date and detailed information on RBI e-mandate regulations, I recommend referring to the official website of the Reserve Bank of India or consulting with relevant financial institutions.