New RBI rules now govern autopay for recurring payments. Transactions up to Rs 15,000 are processed automatically, while larger amounts require OTP approval. However, insurance premiums and SIPs have a higher automatic debit limit of Rs 1 lakh.
If you rely on autopay for your Netflix, mobile bills, or insurance premiums, there’s something you should know, the system now works under stricter RBI rules. These changes decide when your bank can process payments automatically, when you’ll get an OTP alert, and when the bank must actually stop a transaction.
Here’s a quick guide to help you stay on top of these new rules and avoid those unexpected “payment failed” messages.
How to Set Up Autopay the Right Way
You can start autopay either through your bank’s app or website or directly on the merchant’s platform (like your OTT or electricity provider).
Once you register, your bank takes up to seven days to activate the mandate — so if a payment is due before that, you’ll need to pay it manually.
Once active, the bank automatically deducts the amount on your bill date. But remember, for debit cards, your account needs to have enough balance, or the bank might charge you a small penalty.
Fixed vs Variable Payments
Autopay comes in two versions:
Fixed mandate – the amount stays the same every month (like your Rs 399 Netflix plan).
Variable mandate – the amount changes each cycle (like your electricity bill).
Both follow RBI rules, but the way they’re approved depends on the amount being deducted.
The Rs 15,000 Rule You Should Know
If your recurring payment is up to Rs 15,000, the bank can process it automatically. But for anything higher, you’ll get a notification and OTP request before the money leaves your account.
If you ignore that alert, the payment won’t go through.
There’s more flexibility for some categories — for instance, insurance premiums, SIPs, and credit card bills can be auto-debited up to Rs 1 lakh without an OTP. Anything beyond that? You’ll need to manually approve it.
Watch Out for the 24-Hour Alert
Before every recurring payment, your bank must send a pre-debit alert at least 24 hours in advance.
The alert shows the merchant name, amount, and due date, and also gives you an option to pause or cancel the payment — a good safeguard in case you no longer use that service.
Only RBI-Approved Merchants Qualify
Autopay works only with merchants who meet RBI’s e-mandate standards. Once you register, you’ll receive an SMS or email confirmation with all the details.
If your merchant isn’t compliant, autopay simply won’t work — you’ll have to make manual payments.
Lost Card? Autopay Stops Automatically
If your card is lost, stolen, expired, or blocked, all linked autopay transactions stop automatically. You’ll need to delete the old mandate and re-register it with your new card.
Banks aren’t responsible for missed payments in such cases, so it’s best to update your details right away.