RBI regulations affecting payments from India issued cards

Last updated: March 11, 2022

Banks and card networks across India are required to comply with directives from the Indian government that affect recurring card payments and storage of payment details of India issued cards. These two new rules introduce sweeping changes that introduce more friction to payment flows, and lower the success rates for many types of payments from cards issued by Indian banks.

You are impacted if:

  1. You process payments paid with cards issued by Indian banks and

  2. These payments are "off-session", i.e., if the payment occurs without the direct involvement of the customer, using previously-collected payment information. This includes recurring transactions, subscriptions and any payments where the user is not on your site or app at the time of payment authorization.

These conditions apply to businesses in India as well as international businesses selling to Indian customers in both INR and non-INR currencies.

Updating your integration to minimize revenue losses

You will need to make changes to your integration to minimize revenue losses for off-session payments from India issued cards.

To find out what you need to do, please choose how you use Stripe:

  1. If you use Stripe Billing or Stripe Invoicing, e-mandates are automatically generated in the background in line with India regulation. In case of low recurring payment success rates, you can opt to automatically send invoices to your customers to bring them back on-session. Please refer to our guide for Stripe Billing and Invoicing customers to learn how to set this up.

  2. If you use Stripe for payments but use your own custom solution for recurring billing, e.g. through Stripe's Payment Intents and Setup Intents APIs, integration changes will be required. Please refer to our guide for direct payments users.

  3. If you use a third-party billing or invoicing solution (e.g., Chargebee) and don’t use Stripe's APIs directly, please work with your provider to understand any necessary changes you’ll need to make to your integration.

We created flexible solutions through Stripe Billing and other Stripe APIs to comply with the regulations. However, our solutions are limited by the state of readiness of banks and the broader industry. There are over a hundred issuing banks in India and the process of fully adapting to the new requirements is expected to take several months.

Note that we’re not currently able to offer the recurring payment mandate solution to Stripe users in Mexico and Japan. For more context about the new regulations and our upcoming solutions please refer to our FAQs on this topic, or refer to our impact assessment guide.