If you regularly pay for OTT subscriptions, insurance premiums, mobile plans, or electricity bills, autopay can save you from missed deadlines. But under the Reserve Bank of India’s (RBI) updated e-mandate rules, every automatic payment now follows a strict security process to protect users and prevent unauthorized transactions.
How to Set Up Autopay
You can activate autopay either through your bank (for debit or credit cards) or directly on a merchant’s platform. Once you register, the bank takes up to seven days to approve the mandate. If any bill is due before that, you’ll need to pay it manually. Once active, the bank automatically deducts the amount on the due date, but make sure your account has enough balance to avoid return charges.
Fixed vs Variable Mandates
Autopay works in two ways:
- Fixed Mandate: Same amount every month (e.g., ₹399 OTT plan).
- Variable Mandate: Amount changes monthly (e.g., electricity or water bills).
Both types follow the same RBI guidelines, but your approval requirement depends on the amount deducted.
The ₹15,000 Rule You Must Know
For recurring transactions up to ₹15,000, payments go through automatically. Anything higher requires an OTP confirmation through a pre-debit alert.
However, in sectors like insurance and mutual funds, the OTP-free limit is ₹1 lakh. The same applies to credit card bill payments made via standing instruction.
24-Hour Pre-Debit Alerts
Banks must send a pre-debit message 24 hours before any transaction. This message shows the merchant name, amount, and due date, and allows users to opt out or modify the payment ensuring transparency and control.
If Your Card Is Lost or Blocked
Autopay stops working if your card is lost, expired, or blocked. You’ll need to delete the old mandate and re-register with your new card details.
Bottom Line: Safe, Smart, and Strict
RBI’s tightened autopay rules may seem complex, but they offer enhanced security and full user control. By keeping track of your mandates, OTP limits, and alerts, you can enjoy hassle-free recurring payments safe from surprises or failures.