RBI’s New Autopay Rules Explained: What They Mean for Your Card Payments and Subscriptions

The Reserve Bank of India (RBI) has revised its autopay rules for card-based recurring payments, introducing significant changes to improve security, transparency, and user control. The updated framework, rolled out in 2025, allows customers to make automatic payments of up to ₹15,000 without OTP verification, while transactions exceeding this limit will require an OTP-based confirmation.

Simplifying recurring payments in the digital era

In today’s digital lifestyle, most people rely on automatic payments for OTT subscriptions, utility bills, insurance premiums, and mobile recharges. The RBI’s new autopay mechanism is designed to make these recurring payments smoother and more reliable. Users can easily set up the feature through their banking app, website, or directly via the merchant platform.

Once enabled, the system ensures your payments go through on time without manual intervention — saving users from missed deadlines and penalties.

Fixed vs Variable mandates: Understanding the difference

Under the revised framework, autopay is divided into two categories: fixed and variable mandates.

• Fixed Mandate: The payment amount remains constant each month, such as for OTT subscriptions or membership plans.

• Variable Mandate: The billed amount fluctuates each month, as seen in utility bills like electricity or water.

Both categories are regulated by RBI’s security rules, ensuring that payments happen only within the authorized limits.

Why ₹15,000 is a key threshold

The most important feature of the new rule is the ₹15,000 limit. If your recurring transaction is up to ₹15,000, it will be processed automatically without requiring OTP approval. However, for payments above ₹15,000, the bank must send a pre-debit notification to the customer, seeking approval through OTP before deducting the amount.

Interestingly, RBI has allowed higher limits of up to ₹1 lakh for specific sectors such as insurance premiums and mutual fund SIPs, where higher value recurring payments are common.

24-hour notification before every debit

To enhance transparency, the RBI has mandated that the customer must receive an alert at least 24 hours before any recurring debit. This pre-debit notification includes essential details such as the merchant name, transaction amount, and scheduled date. During this window, the customer has the right to pause, modify, or cancel the payment if necessary.

This feature not only improves security but also ensures that users maintain full control over their card transactions.

What happens if your card is lost or blocked

If your debit or credit card is lost, stolen, or blocked for any reason, the linked autopay mandates automatically become inactive. To resume payments, the user must deactivate the old mandate via their merchant or bank platform and re-register the mandate using the new card details. This measure helps prevent unauthorized use of lost or compromised cards.

Benefits and safety features

RBI’s new autopay rules have been crafted to strengthen consumer protection while promoting convenience. The guidelines ensure that every transaction is transparent and traceable, significantly reducing the chances of fraudulent or unauthorized charges.

Some of the major benefits include:

• No missed payments for recurring bills and subscriptions.

• OTP verification for higher-value transactions ensures better control.

• Advance alerts for every payment, enabling timely action.

• Simplified setup through banks or merchants.

• Enhanced consumer confidence in digital payments.

Final thoughts

The new RBI Autopay Guidelines 2025 mark a major step toward balancing ease of use with financial security. By clearly defining limits, mandates, and notification protocols, the central bank aims to empower users with complete visibility and authority over their recurring card payments.

For consumers, the key takeaway is to regularly monitor their active mandates, ensure their card details are updated, and verify that autopay instructions are configured according to their preferences. Doing so will help maintain a seamless, secure, and stress-free digital payment experience in the long run.