No more hassles—auto payments will update automatically when you get a new card, thanks to a major RBI move.

Card Rules Change: Under the RBI’s new regulations, auto payments will no longer be interrupted even when a card is replaced. Now, EMIs, SIPs, and subscriptions will automatically link to the new card, providing significant relief to customers.

RBI New Card Rules: Whenever a new debit or credit card needs to be issued, it often triggers a series of minor and major inconveniences. Auto payments linked to the old card cease to function, causing services such as OTT subscriptions, insurance premium installments, and SIPs to come to a halt.

To resolve this, one typically has to visit various platforms and manually enter the new card details—a process that proves to be quite cumbersome. To spare customers from this ordeal, the Reserve Bank of India (RBI) has implemented a new set of rules. Let’s take a closer look at these changes.

The Card Changes, But Payments Won’t Stop

Under the new regulations introduced by the Reserve Bank, this specific inconvenience has been eliminated. Banks and card-issuing companies will now be able to automatically transfer auto payments linked to an old card to the new one. This means that even if you replace your card, recurring payments governed by e-mandates—such as subscriptions or utility bills—will continue to process seamlessly. You will no longer need to update your card details repeatedly.

What Are the New Rules?

Now, whenever your card is replaced, all recurring payments—including those for OTT services, insurance premiums, SIPs, and EMIs—will automatically link to your new card. Furthermore, a key highlight of this initiative is that no additional charges will be levied for this service.

Customers will also be provided with details regarding every transaction, along with an opportunity to register a grievance if necessary. Additionally, banks are now mandated to establish a robust grievance redressal mechanism to resolve customer complaints, thereby ensuring that customers do not face any undue difficulties.

Why Was This Change Implemented?

One of the primary objectives behind this regulatory change is to safeguard customers from financial losses. For instance, when a card expires or gets blocked, the associated auto payments come to a standstill. This can result in missed SIP investment installments or loan repayments, ultimately causing financial detriment to the investors or borrowers involved. Even though funds are available in the bank account, a penalty charge still has to be paid. For this very reason, changes have been made to this system.