Summary
The Reserve Bank of India (RBI) introduced new rules for recurring online payments (e-Mandates) to improve security. These changes affect how Wati subscriptions and recurring payments are processed for customers in India. This article explains what e-Mandates are, what the new rules require, how they impact your subscription, and what you need to do to avoid payment failures.
All financial institutions, businesses, associated partners, and gateways must comply with these guidelines starting September 30, 2021.
Note: Broadcasts are now Campaigns – same powerful features, updated name!
Instructions
If you are a Wati customer in India and use recurring payments (monthly or yearly subscriptions, or auto-recharge), review the sections below to understand how the RBI guidelines affect you and what actions you may need to take.
What are e-Mandates?
An e-Mandate is a digital authorization that allows a business to automatically collect recurring payments from your debit card, credit card, or other supported payment method.
Wati monthly and yearly subscriptions are processed as e-Mandates.
The framework was introduced by the Reserve Bank of India (RBI) to make recurring online payments more secure, especially for card-not-present transactions (online payments where the physical card is not used).
What are the latest RBI guidelines?
Effective October 01, 2021, RBI introduced the following changes:
1. Transaction limit
Automatic recurring payments are limited to ₹5000 per transaction.
Payments above ₹5000 require additional approval each time.
2. Additional Factor of Authentication (AFA)
Additional Factor of Authentication (AFA) is a one-time verification step required by your card-issuing bank.
All existing subscriptions must be re-registered using a one-time AFA process.
The rules apply to:
Debit cards
Credit cards
Prepaid Payment Instruments (PPIs), including wallets
Unified Payments Interface (UPI)
3. How payments work under the new rules
For recurring payments below ₹5000:
You must complete AFA once.
After that, future payments are auto-debited.
For recurring payments above ₹5000:
You must complete AFA for every transaction.
Important note on auto-recharge
Auto-recharge for credits is available only for payments made in USD.
If you pay in INR, auto-recharge is not supported due to RBI regulations.
How does this affect your Wati subscription?
Under the RBI framework:
All existing Wati subscriptions must be re-registered using AFA.
You may experience higher payment failure rates if AFA is not completed.
If you are on a monthly or annual plan
You have 2 options:
Manual payment via payment link
You can request Wati to send a one-time payment link via email at each renewal.
You will manually complete the payment.
The subscription amount does not change.
Upgrade to a yearly plan
You only need to authorize the payment once per year.
This reduces the need for frequent AFA approvals.
If you are purchasing campaign credits
You can still purchase credits directly from your Wati account. If your transaction fails:
Contact the Billing Team.
Request a one-time payment link via email.
To avoid repeated failures, contact your card-issuing bank and complete the required AFA setup.
What if you haven’t set up the e-Mandate?
If your e-Mandate is not set:
Recurring payments (such as monthly subscriptions) may be declined.
Issuing banks may block non-compliant transactions.
You must set up the e-Mandate from both:
Your bank side
Your Wati account
How to set up the e-Mandate
Step 1: From your bank side
Contact your card-issuing bank.
Request to enable e-Mandate on your card.
Complete the required authentication process.
This process is handled entirely by your bank.
Step 2: From your Wati account
Log in to your Wati account.
Go to the Billing Details available under Account Details.
Click on Manage Subscription and review your payment method.
If e-Mandate is not set, click Set up now.
Follow the on-screen instructions to complete the setup.
Are cross-border transactions impacted?
Yes. The RBI directive also affects cross-border transactions where payments are made using Indian-issued cards, regardless of currency.
What happens if you don’t comply?
If the payment does not meet RBI requirements:
Issuing banks will block the transaction.
Your payment will fail.
Your subscription may be disrupted.
Wati is continuously working to support more payment methods and simplify AFA registration to help you stay compliant.
Alternative payment option
PayPal can be used in Wati for non-INR payments. You can:
Update your payment method directly under the Billing Details, or
Contact the Billing Team for assistance.
If you continue to face payment issues, contact the Wati Billing Team with your billing details. We’ll help you resolve the issue as quickly as possible.