RBI’s New Auto-Debit Rules Give Customers More Control Over Recurring Payments

The RBI’s revised framework consolidates earlier guidelines into a single, structured system for recurring payments. Effective immediately, the rules aim to enhance security, transparency, and user control for millions of Indians relying on auto-debit for bills, subscriptions, EMIs, and investments.

Key Changes For Customers

• Under the new rules, customers must complete a one-time registration with additional factor authentication (AFA) before activating any e-mandate. The first transaction under each mandate must also be authenticated.
• Recurring transactions up to ₹15,000 can now be processed without OTP, while essential payments like insurance premiums, mutual fund SIPs, and credit card bills enjoy a higher threshold of ₹1 lakh. 

Alerts And Transparency

Banks and payment providers must send pre-debit alerts at least 24 hours before each transaction, detailing merchant name, amount, and date. Customers can opt out of specific debits or cancel mandates entirely, with changes validated through AFA. Post-transaction notifications will also be mandatory. 

Flexibility For Users

Customers can modify, pause, or revoke mandates anytime, set upper limits for variable payments, and retain mandates even if cards are replaced. Importantly, banks cannot levy extra charges for using the e-mandate facility. 

Key Highlights

•⁠  ⁠One-time registration with additional authentication required for e-mandates

•⁠  ⁠Recurring transactions up to ₹15,000 OTP-free; essential payments up to ₹1 lakh

•⁠  ⁠Mandatory pre-debit alerts 24 hours before transactions

•⁠  ⁠Customers can modify, pause, or cancel mandates anytime

•⁠  ⁠No additional charges allowed for e-mandate facility

Sources: Mint, India.com, Dynamite News, India TV News, Zee News