The Reserve Bank of India has updated its auto-debit and e-mandate guidelines, allowing recurring digital payments of up to ₹15,000 to be processed without OTP verification after the customer approves the initial mandate. The move is expected to make recurring online payments faster and more convenient for users.
Under the revised framework, customers will no longer need to enter an OTP for every recurring payment within the ₹15,000 limit if the e-mandate has already been activated with proper consent. The updated rules apply to auto-pay transactions made through UPI, debit cards, credit cards, and digital wallets.
The change is likely to benefit users who regularly pay for services such as Netflix and Amazon Prime subscriptions, SIP investments, insurance premiums, electricity bills, and other monthly expenses. Earlier, repeated OTP authentication often resulted in delays or failed transactions, especially for frequent payments.
The RBI has also increased the Additional Factor Authentication limit for selected categories. Insurance premiums, mutual fund SIPs, and credit card bill payments can now have recurring payment limits of up to ₹1 lakh under approved mandates.
Despite the relaxation, banks and payment platforms will continue processing transactions only when a valid customer-approved mandate exists.
To improve user safety, banks will still be required to send SMS or email alerts at least 24 hours before any scheduled auto-debit. This will give customers enough time to pause, cancel, or modify the payment before the amount is deducted.
Users will also have the option to set payment limits, mandate validity periods, and transaction caps based on their preferences. Banks will continue allowing customers to manage, modify, or revoke active e-mandates whenever required.
The revised rules are expected to improve the efficiency of India’s digital payment ecosystem by reducing transaction failures and making recurring payments smoother. Customers have also been advised to regularly review their active subscriptions and auto-debit services to avoid unwanted deductions.
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