MUMBAI, April 22 -- The Reserve Bank of India (RBI) on Tuesday tightened and consolidated rules for e-mandates-automated instructions that allow recurring payments-aimed at improving transaction processing by payment system operators (PSOs) and reducing friction for users.

Mint explains what has changed, why it matters, and what payment system operators will need to adjust.

An e-mandate is a one-time authorization that allows a bank to automatically process recurring payments on a customer's behalf. These are used for subscriptions such as OTT services, mutual fund investments, utility bills, insurance premiums, and loan instalments.

Setting up an e-mandate requires a one-time registration and authentication using an additional factor ...