No OTP for ₹15,000 Auto-Pay, ₹1 lakh limit for SIPs, insurance, says RBI
April 22, 2026
Recurring payments up to ₹15,000 will no longer require OTP every time.
Recurring payments up to ₹15,000 will no longer require OTP every time.
Auto-Debits Get Easier: RBI Removes OTP for Small Recurring Payments
Sunainaa Chadha NEW DELHI
Listen to This Article
If you’ve ever been annoyed by entering an OTP every time your Netflix, SIP, or electricity bill gets auto-debited, there’s good news. The Reserve Bank of India has simplified how recurring payments work—making them fasteIf you use auto-pay for your subscriptions, SIPs, or utility bills, the RBI’s updated e-mandate rules will quietly change how your money moves every month—making payments smoother, but still keeping safeguards in place.
RBI on Tuesday issued a consolidated digital payments e-mandate framework, setting a threshold of ₹15,000 per transaction for recurring payments without requiring an OTP.
At the heart of the change is a simple shift: you won’t need to enter an OTP for every recurring payment anymore, as long as the amount is within a certain limit. Once you register a mandate with your bank using one-time authentication, payments up to ₹15,000 will go through automatically without repeated approvals.r, smoother, and less intrusive, while still keeping your money safe.
After the update, users can register a one-time e-mandate using additional factor authentication (AFA). Once approved, subsequent recurring payments up to ₹15,000 will be processed automatically without requiring OTP each time. However, transactions above this threshold will continue to require authentication, RBI said in the report. In essence: your routine expenses—OTT subscriptions, electricity bills, gym memberships, or smaller EMIs—will go through without repeated interruptions. At the same time, the RBI has retained an important layer of security: any recurring payment above ₹15,000 will still require additional authentication, ensuring that higher-value transactions remain protected.
Recognising that some larger payments are essential and predictable, the RBI has allowed insurance premiums, mutual fund SIPs, and credit card bill payments to be processed without OTP up to ₹1 lakh per transaction.
Even though the system is becoming more automated, you are not losing control. Every e-mandate must be registered with your explicit consent through authentication, and you retain the ability to modify, pause, or cancel it at any time.
For variable payments, you can even set a maximum limit, ensuring that no unexpected debit crosses a threshold you are uncomfortable with.
Any change to the mandate also requires authentication, so no one can alter it without your approval.
But what does this actually mean for you?
The biggest change: Fewer OTPs, more convenience
Under the new rules:
Recurring payments up to ₹15,000 will not need OTP every time. You give approval once, and after that payments happen automatically.
So your:
OTT subscriptions
Gym memberships
Utility bills
Smaller EMIs
…will go through without repeated interruptions
This means the everyday friction you’re used to—missed OTPs, failed subscriptions, interrupted services—should reduce significantly. Earlier, even small recurring payments required frequent authentication, which often led to failed transactions if you missed the alert.
But there’s a catch (and it’s a good one)
For higher-value payments, RBI has kept extra safety:
Above ₹15,000 → OTP required
But for key financial payments like:
Insurance premiums
Mutual fund SIPs
Credit card bills
You can pay up to ₹1 lakh without OTP
How this works in real life
Here’s what changes in your daily routine:
Before
Every auto-debit → OTP
Miss OTP → payment fails
Now
One-time approval
Future payments (within limits) → automatic
Result: Fewer failed payments, less friction
RBI hasn’t just made things easier—it has also added safeguards:
Pre-debit alerts (before money goes out)
You’ll get a notification at least 24 hours before debit
It will show:
Merchant name
Amount
Date
You can cancel or opt out before payment
Post-debit alerts (after payment)
You’ll be informed after every transaction
Includes grievance redressal details You can cancel anytime
Modify or stop mandates easily
No need to chase merchants
Your money is still under your control
No hidden charges
One important user benefit: Banks cannot charge you for using e-mandates
So:
No convenience fees
No auto-debit charges
Another big relief: Card change won’t break payments
Earlier:
If your card expired or got replaced → all auto-payments failed
Now:
Your mandates can be mapped to your new card automatically
Why RBI made these changes
The idea is simple:
Make payments invisible and seamless
But keep fraud risk under control
So the framework balances:
Convenience (no OTP for small payments)
Security (OTP for large payments)
Transparency (alerts before and after)
What you should do as a user
Even with these protections:
Keep track of your subscriptions
Read pre-debit alerts carefully
Cancel unused mandates
Report issues immediately
Points to remember:
Before any money is deducted, your bank is required to send you a pre-transaction notification at least 24 hours in advance, clearly stating the merchant’s name, the amount, and the date of debit. This gives you enough time to review the transaction and opt out if something doesn’t look right. After the payment is processed, you receive a detailed notification along with information on how to raise a complaint if needed.
The new rules also address a long-standing inconvenience. If your debit or credit card is reissued due to expiry or replacement, your existing mandates can now be automatically mapped to the new card, ensuring continuity. This means you won’t have to update payment details across multiple platforms or worry about failed transactions due to card changes. Additionally, the RBI has made it clear that no charges can be levied for using the e-mandate facility, making the system not just smoother but also cost-free for users.
Importantly, consumer protection remains intact. Banks are required to have a proper grievance redressal system, and RBI rules on limiting customer liability for unauthorised transactions also apply to recurring payments. This ensures that if something goes wrong, you are not left bearing the entire financial burden, provided you report the issue promptly.
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First Published: Apr 22 2026 | 2:03 PM IST
Auto-Debits Get Easier: RBI Removes OTP for Small Recurring Payments
Sunainaa Chadha NEW DELHI
Listen to This Article
If you’ve ever been annoyed by entering an OTP every time your Netflix, SIP, or electricity bill gets auto-debited, there’s good news. The Reserve Bank of India has simplified how recurring payments work—making them fasteIf you use auto-pay for your subscriptions, SIPs, or utility bills, the RBI’s updated e-mandate rules will quietly change how your money moves every month—making payments smoother, but still keeping safeguards in place.
RBI on Tuesday issued a consolidated digital payments e-mandate framework, setting a threshold of ₹15,000 per transaction for recurring payments without requiring an OTP.
At the heart of the change is a simple shift: you won’t need to enter an OTP for every recurring payment anymore, as long as the amount is within a certain limit. Once you register a mandate with your bank using one-time authentication, payments up to ₹15,000 will go through automatically without repeated approvals.r, smoother, and less intrusive, while still keeping your money safe.
After the update, users can register a one-time e-mandate using additional factor authentication (AFA). Once approved, subsequent recurring payments up to ₹15,000 will be processed automatically without requiring OTP each time. However, transactions above this threshold will continue to require authentication, RBI said in the report. In essence: your routine expenses—OTT subscriptions, electricity bills, gym memberships, or smaller EMIs—will go through without repeated interruptions. At the same time, the RBI has retained an important layer of security: any recurring payment above ₹15,000 will still require additional authentication, ensuring that higher-value transactions remain protected.
Recognising that some larger payments are essential and predictable, the RBI has allowed insurance premiums, mutual fund SIPs, and credit card bill payments to be processed without OTP up to ₹1 lakh per transaction.
Even though the system is becoming more automated, you are not losing control. Every e-mandate must be registered with your explicit consent through authentication, and you retain the ability to modify, pause, or cancel it at any time.
For variable payments, you can even set a maximum limit, ensuring that no unexpected debit crosses a threshold you are uncomfortable with.
Any change to the mandate also requires authentication, so no one can alter it without your approval.
But what does this actually mean for you?
The biggest change: Fewer OTPs, more convenience
Under the new rules:
Recurring payments up to ₹15,000 will not need OTP every time. You give approval once, and after that payments happen automatically.
So your:
OTT subscriptions
Gym memberships
Utility bills
Smaller EMIs
…will go through without repeated interruptions
This means the everyday friction you’re used to—missed OTPs, failed subscriptions, interrupted services—should reduce significantly. Earlier, even small recurring payments required frequent authentication, which often led to failed transactions if you missed the alert.
But there’s a catch (and it’s a good one)
For higher-value payments, RBI has kept extra safety:
Above ₹15,000 → OTP required
But for key financial payments like:
Insurance premiums
Mutual fund SIPs
Credit card bills
You can pay up to ₹1 lakh without OTP
How this works in real life
Here’s what changes in your daily routine:
Before
Every auto-debit → OTP
Miss OTP → payment fails
Now
One-time approval
Future payments (within limits) → automatic
Result: Fewer failed payments, less friction
RBI hasn’t just made things easier—it has also added safeguards:
Pre-debit alerts (before money goes out)
You’ll get a notification at least 24 hours before debit
It will show:
Merchant name
Amount
Date
You can cancel or opt out before payment
Post-debit alerts (after payment)
You’ll be informed after every transaction
Includes grievance redressal details You can cancel anytime
Modify or stop mandates easily
No need to chase merchants
Your money is still under your control
No hidden charges
One important user benefit: Banks cannot charge you for using e-mandates
So:
No convenience fees
No auto-debit charges
Another big relief: Card change won’t break payments
Earlier:
If your card expired or got replaced → all auto-payments failed
Now:
Your mandates can be mapped to your new card automatically
Why RBI made these changes
The idea is simple:
Make payments invisible and seamless
But keep fraud risk under control
So the framework balances:
Convenience (no OTP for small payments)
Security (OTP for large payments)
Transparency (alerts before and after)
What you should do as a user
Even with these protections:
Keep track of your subscriptions
Read pre-debit alerts carefully
Cancel unused mandates
Report issues immediately
Points to remember:
Before any money is deducted, your bank is required to send you a pre-transaction notification at least 24 hours in advance, clearly stating the merchant’s name, the amount, and the date of debit. This gives you enough time to review the transaction and opt out if something doesn’t look right. After the payment is processed, you receive a detailed notification along with information on how to raise a complaint if needed.
The new rules also address a long-standing inconvenience. If your debit or credit card is reissued due to expiry or replacement, your existing mandates can now be automatically mapped to the new card, ensuring continuity. This means you won’t have to update payment details across multiple platforms or worry about failed transactions due to card changes. Additionally, the RBI has made it clear that no charges can be levied for using the e-mandate facility, making the system not just smoother but also cost-free for users.
Importantly, consumer protection remains intact. Banks are required to have a proper grievance redressal system, and RBI rules on limiting customer liability for unauthorised transactions also apply to recurring payments. This ensures that if something goes wrong, you are not left bearing the entire financial burden, provided you report the issue promptly.
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First Published: Apr 22 2026 | 2:03 PM IST