The Reserve Bank of India has simplified digital recurring payments by setting a per‑transaction threshold of ₹15,000 above which additional authentication (such as an OTP) will be required, while smaller auto‑debits will no longer need repeated OTPs.
Key Changes for Users
Under the updated e‑mandate framework, recurring payments of up to ₹15,000 can be processed automatically via UPI auto‑pay, debit/credit cards, and prepaid instruments without an OTP, improving the experience for bills such as OTT subscriptions, utilities, and small‑ticket renewals. For transactions above ₹15,000, payment systems must deploy additional factor authentication, except in specific cases such as insurance premiums, mutual fund SIPs, and credit card bills, which can go through without OTP even between ₹15,000 and ₹1 lakh under defined conditions.
Consumer Safeguards and Process Clarity
RBI has mandated both pre‑ and post‑debit alerts: customers must receive a notification at least 24 hours before the auto‑debit, quoting the merchant’s name, amount, and date, along with an option to cancel or opt out. After the debit, a second alert confirms the transaction and provides grievance‑redressal details; the central bank has also barred merchants from charging users for using or revoking e‑mandates. The framework applies the same liability protections as for other electronic transactions, so users are not liable for unauthorised recurring debits reported within the prescribed time.
