05.02 · Concept · Free
Recurring in India
Set up a recurring charge under the RBI e-mandate framework, and name the authentication step, the value threshold and the notice period it forces on you.
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Indian recurring payments need an RBI-compliant mandate, not just a saved card. The customer authenticates when the mandate is created, receives a pre-debit notice at least 24 hours before collection, and must re-authenticate any recurring transaction above 1500000 paise.
What this lesson answers
- how do RBI recurring payment mandates work
- when is AFA required for Indian subscriptions
- what notice is required before recurring debit India
Notes
Recurring in India — RBI’s e-mandate framework exists so recurring debits on cards, wallets and UPI are pre-authorised, pre-notified and capped without fresh authentication; without it, a normal “card-on-file” subscription flow that works on Visa or Mastercard can fail or be declined in India.
Key Concepts: - RBI’s e-mandate framework requires Additional Factor Authentication at mandate registration, so the first setup step must authenticate the customer before any recurring debit is attempted. - RBI requires a pre-debit notification at least hours before the charge, so a debit scheduled for day must notify the customer no later than hours. - RBI’s no-fresh-AFA threshold is paise per recurring transaction; if the debit is paise, fresh AFA is required before that debit. - India differs from the Visa/Mastercard card-on-file model: a stored credential alone is not enough for recurring Indian card debits because RBI requires mandate registration, pre-debit notice, and threshold-based AFA. - NPCI UPI AutoPay follows the Indian mandate pattern: the user approves the mandate on UPI, and recurring debits can run under the approved mandate subject to the RBI/NPCI limits. - Razorpay and Cashfree recurring-payment integrations expose mandate-style subscription flows for India because RBI does not allow a merchant to simply retry an unauthenticated saved-card debit as a recurring charge. - The charge amount must be represented in minor units, e.g. paise for a rupee subscription, because RBI threshold comparisons are per transaction amount, not display strings.
Watch For: - Code shape: `chargeSavedCard(customer_id, 199900)` without an RBI-registered mandate; the paise debit can be declined, leaving the merchant out of pocket by paise for service already delivered. - Code shape: `scheduleDebit(now + 2 hours, 99900)` after sending the pre-debit notice; RBI requires at least hours, so the paise debit can fail and the merchant loses that billing cycle. - Code shape: `if amount <= 500000 paise then noAFA()` using the old RBI threshold; a valid paise subscription may be wrongly blocked, leaving the merchant out of pocket by paise. - Code shape: `debitMandate(1500001)` without collecting fresh AFA; RBI requires AFA above paise, so the customer is not properly authorised and the merchant risks reversal or failed collection of paise.
The Money Invariant: - Every Indian recurring debit must have a live RBI-compliant mandate before money moves; otherwise a paise subscription can become unpaid service rather than collected revenue. - Every debit must have a pre-debit notice sent at least hours earlier; otherwise a scheduled paise renewal can be blocked and the merchant loses paise of expected cash flow. - Every debit above paise must collect fresh AFA; otherwise a paise enterprise subscription is not validly authorised under RBI rules and may not settle. - Every amount comparison must use paise, e.g. , because comparing rupee display values can misclassify a paise debit and put paise at risk.
References
Common questions
- Can I charge an Indian customer using only a saved card?
- No. For recurring Indian debits, a stored card credential is not enough. You need an RBI-compliant mandate created with customer authentication before the first debit. Without that mandate, a subscription flow that works elsewhere can be declined or fail during collection.
- When does an Indian recurring payment need fresh authentication?
- Fresh authentication is needed when the recurring debit is above 1500000 paise. At or below that threshold, the debit can run under the approved mandate, provided the mandate is active and the required pre-debit notification has already been sent.
- How far in advance must I notify the customer?
- The customer must receive a pre-debit notification at least 24 hours before the recurring charge. If you notify too late, the debit may be blocked even if the mandate exists and the amount is otherwise within the no-fresh-authentication threshold.
Short definition: what is Recurring in India?