RBI Autopay Rules Explained: Will Your Monthly Bills Be Deducted Automatically? Here’s What You Need to Know

If you often forget to pay your mobile, OTT, electricity, or insurance bills on time, the Autopay (E-Mandate) feature can be a real lifesaver. This service ensures your payments are made automatically on the due date. However, it operates strictly under the Reserve Bank of India (RBI) guidelines, which include specific limits and authentication requirements. Here’s a complete breakdown of how Autopay works, its benefits, and the important rules every user must follow.

What Is Autopay and How Does It Work?

The Autopay feature allows users to automate recurring payments such as mobile recharges, OTT subscriptions, electricity bills, gas, water, or insurance premiums. Once enabled, the amount is deducted automatically from your linked account or card on the scheduled date.

You can activate Autopay through your bank’s website, mobile app, or directly on the merchant’s payment portal. After successful registration, the Autopay service usually becomes active within seven working days. If your bill is due before activation, you’ll need to make a manual payment for that cycle.

Autopay operates in two formats:

• Fixed Mandate: The payment amount remains constant every month.
  Example – ₹399 OTT subscription plan.

• Variable Mandate: The payable amount changes every month.
  Example – your electricity or water bill.

For debit card payments, it’s crucial to maintain sufficient balance in your account. If your account has insufficient funds, Autopay return charges may apply—typically 2% of the payment amount or ₹500, whichever is higher.

RBI’s Framework for Autopay Transactions

The Reserve Bank of India implemented new Autopay rules effective October 1, 2021, to enhance security and give customers greater control over recurring transactions.

Here are the key highlights of RBI’s guidelines:

• No OTP (One-Time Password) or additional authentication is required for payments up to ₹15,000.

• For transactions above ₹15,000, OTP verification is mandatory.

• For insurance premiums and mutual fund SIPs, the upper limit is ₹1 lakh.

• For credit card bill payments, Autopay or Standing Instructions (SI) are allowed only up to ₹1 lakh. Any amount beyond this requires OTP authorization every time.

This framework ensures that customers are protected from unauthorized deductions and maintain full control over their recurring transactions.

When Is Additional Authentication (AFA) Required?

Under RBI’s rules, Additional Factor Authentication (AFA) is mandatory in the following cases:

• When initiating a new recurring payment that exceeds ₹15,000.

• For any recurring debit above ₹15,000, users must authenticate the transaction via OTP before every deduction.

• Banks cannot process any transaction without the customer’s explicit consent.

In addition, before every scheduled Autopay, banks are required to send customers a pre-debit notification at least 24 hours in advance. This message gives users the option to opt out or pause payment if needed.

Information Required for E-Mandate Registration

When setting up an E-Mandate, users must provide certain details, which may vary depending on the merchant:

• Customer or account identification number (like consumer number, policy number, or relationship ID).

• The maximum permissible transaction limit (E-Mandate limit amount) in case of a variable plan.

After successful registration, users receive an SMS or email confirmation. Only merchants registered under RBI’s framework are authorized to offer the E-Mandate service.

What Happens If Your Card Is Lost or Blocked?

If your debit or credit card is lost, stolen, or temporarily blocked, all associated Autopay transactions are automatically stopped.
In such cases, you must delete the old E-Mandate from your bank or merchant portal and re-register once the new card is issued.

Banks are not responsible for failed or missed payments during this period. Therefore, customers should manually ensure their bills are paid on time until Autopay is reactivated.

Why Autopay Is Useful but Needs Careful Handling

Autopay simplifies bill payments and ensures you never miss a due date. However, users must remain cautious about transaction limits, account balances, and pre-debit notifications to avoid penalties or failed payments.

RBI’s framework has made the system secure, transparent, and customer-friendly, empowering users with greater control while maintaining the convenience of automatic payments.

In summary: Autopay can be a valuable financial tool if used wisely. Understanding RBI’s rules, authentication requirements, and payment limits ensures your transactions remain seamless, secure, and fully under your control.