In a move aimed at making digital payments smoother and more reliable, the Reserve Bank of India (RBI) has updated its recurring payment rules, allowing auto-debit transactions of up to ₹15,000 to go through without requiring a fresh OTP every time.
The change is expected to significantly reduce payment failures and improve convenience for millions of users who rely on automatic payments for everyday expenses.
What Has Changed
Under the revised guidelines, once a user registers and approves an auto-debit mandate, future recurring payments within the ₹15,000 limit can be processed without additional authentication for each cycle.
This means payments such as monthly subscriptions, SIP instalments, utility bills, broadband charges, and maintenance fees will now be deducted seamlessly—without the need to enter an OTP every time.
Why This Matters
Recurring payment failures have long been a common issue. OTP delays, poor network connectivity, missed notifications, or inconvenient timing often result in unsuccessful transactions.
Such failures can lead to service interruptions, missed investment instalments, delayed insurance payments, or even penalties on credit cards. The RBI’s move is designed to eliminate these avoidable disruptions and make digital payments more reliable.
First-Time Approval Still Mandatory
The RBI has made it clear that user consent remains central to the system. The first time you set up any auto-debit mandate, you must approve it using OTP or another authentication method.
Only after this initial approval will subsequent payments be processed automatically, ensuring that users retain full control over their finances.
Higher Limit for Key Payments
In a major relief for users with larger recurring expenses, the RBI has also increased the limit to ₹1 lakh for specific categories such as insurance premiums, mutual fund SIPs, and credit card bill payments.
This will particularly benefit individuals who often face delays or friction while making high-value recurring payments.
Alerts Will Continue
Even with smoother processing, transparency remains intact. Banks and payment platforms are required to send pre-debit alerts before every transaction, informing users about the amount, merchant, and timing.
Users will also receive confirmation after the payment is completed, ensuring that transactions remain visible and trackable.
Time to Review Your Subscriptions
With auto-pay becoming easier, financial experts suggest reviewing all active mandates linked to your bank accounts, cards, or UPI apps. Many users unknowingly continue paying for unused subscriptions or duplicate services.
Regularly checking and managing these mandates can help avoid unnecessary expenses.
A Step Towards Hassle-Free Payments
The RBI’s updated rules aim to strike a balance between convenience and control—making recurring payments seamless while maintaining safeguards like consent and alerts.
For users, the biggest takeaway is clear: fewer failed payments, reduced OTP dependency, and a smoother, stress-free monthly payment experience.
