RBI auto-pay rules changed: No OTP for Rs 15,000 payments; Rs 1 lakh limit for SIPs, insurance—What it means for users

The Reserve Bank of India has changed how your monthly payments will work and you may not even notice it at first. From OTT subscriptions and electricity bills to SIPs and credit card dues, recurring payments are set to become smoother with fewer OTP interruptions. Under the new e-mandate framework, auto-debits up to Rs 15,000 will go through without OTP after one-time approval, while select financial payments can go up to Rs 1 lakh without repeated authentication. The idea is simple: fewer failed payments, less hassle but with safety checks still in place.

No OTP for Rs 15,000 auto-pay

This is the biggest change for users.

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Once you approve a mandate using Additional Factor Authentication (AFA), payments up to Rs 15,000 will happen automatically. No OTP will be needed every time.

If the amount crosses Rs 15,000, authentication will still be required.

One rule for UPI, cards, auto-pay

The new framework applies across all major payment modes.

This includes:

• UPI auto-pay
• Debit and credit cards
• Prepaid payment instruments

It also covers cross-border recurring payments, meaning even international subscriptions follow the same rules now.

Rs 1 lakh limit for SIPs, insurance

There is an important exception to the Rs 15,000 cap.

Payments like:

• Insurance premiums
• Mutual fund SIPs
• Credit card bills

can go up to Rs 1 lakh without OTP, if registered under e-mandate.

This reduces disruptions in high-value but essential payments.

24-hour alert before money is deducted

You will now get a heads-up before any auto-debit.

Banks must send a message at least 24 hours in advance with:

• Merchant name
• Amount
• Debit date

You can cancel or opt out before the payment is processed.

Alert after every payment too

The system does not stop at pre-alerts.

After every debit, you will receive a confirmation along with details on how to raise a complaint if needed.

Banks must ensure proper grievance systems.

No charges, no payment failures on card change

There is no fee for using e-mandates.

Also, if your card is replaced or expires, your auto-pay instructions will continue without disruption - something that earlier caused failed payments.

You stay in control of payments

Even though payments become automatic, control stays with you.

You can:

• Modify mandates
• Pause payments
• Cancel anytime

For variable bills, you can also set a maximum limit.

Protection if something goes wrong

If an unauthorised debit happens, RBI rules protect you.

You will not be held liable if you report the issue within the required time.

What this means for you?

In daily life, this means fewer interruptions.

• Subscriptions will not stop due to missed OTP
• Bills will get paid on time
• Small EMIs will not fail

At the same time, bigger payments will still need approval.

Why RBI made this move?

India’s digital payments are growing fast, especially through UPI.

The goal is to:

• Reduce failed transactions
• Make payments seamless
• Keep fraud risks under control

The new e-mandate rules bring all systems under one framework, making auto-pay simpler and more reliable for users.