Online subscriptions, utility bills, EMIs — most people today rely on autopay for hassle-free payments. But did you know that the RBI (Reserve Bank of India) has introduced new rules governing these recurring payments made through debit and credit cards?
Let’s break down what these autopay rules mean for you, how they work, and how to manage them securely.
What Is Autopay?
Autopay (or auto-debit) is a feature that automatically deducts payments from your card or account on a scheduled date — for example, for Netflix, insurance premiums, or SIPs.
It eliminates the need for manual payments, reducing the risk of missed due dates or penalties.
Why Did RBI Introduce New Autopay Rules?
Earlier, recurring payments were processed automatically without much user control or notification. This led to unauthorized charges and fraud risks.
To enhance security and transparency, the RBI implemented new e-mandate rules (effective from October 2021) for card-based recurring transactions.
Key Autopay Rules You Should Know
Registration with Authentication
You must manually authorize your first recurring payment using OTP or other authentication methods before enabling autopay for future transactions.
Pre-Debit Notification
The bank must send you a notification 24 hours before the payment via SMS or email.
This gives you time to review, modify, or cancel the transaction if needed.
Transaction Limit
Autopay transactions are capped at ₹15,000 per transaction for most cases. For higher amounts, an additional authentication (OTP) is required.
Easy Cancellation or Modification
You can pause, modify, or cancel any recurring payment at any time through your bank’s net banking or mobile app — no extra charge.
Refunds for Failed or Unauthorized Payments
If an auto-debit occurs without authorization or fails due to a system error, the refund must be processed within a specific time frame, ensuring customer protection.
How It Affects You
For most users, these rules mean greater control and transparency.
However, some international subscriptions or services may fail if they don’t comply with RBI’s system.
💡 Tip: Re-register your subscriptions on compliant platforms or use UPI autopay for supported services.
Best Practices for Safe Autopay Usage
Register autopay only with trusted merchants.
Regularly check your transaction alerts and statements.
Set payment limits to avoid unexpected debits.
Keep your bank and card details updated.
Being proactive ensures you enjoy the convenience of autopay without compromising on security.
Final Thoughts
Autopay can make financial management effortless — but only when used wisely.
With the RBI’s new rules, you now have complete visibility, control, and security over every recurring transaction.
Stay informed, stay alert, and let autopay work safely for you.
FAQs
Q1. Do these autopay rules apply to UPI transactions too?
Yes, similar e-mandate rules apply to UPI Autopay, though limits and processes may vary slightly.
Q2. What happens if I don’t approve a pre-debit notification?
If you ignore or decline it, the payment will not be processed.
Q3. Can I set up multiple autopay mandates on the same card?
Yes, you can register multiple recurring payments with different merchants, each requiring separate authorization.
Q4. Will my old autopay arrangements still work?
You may need to re-register older subscriptions under the new e-mandate framework for uninterrupted payments.
Published on : 7th November
Published by : SMITA
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