The Reserve Bank of India ( RBI ) has made significant changes to auto-debit rules. According to the central bank, the move is aimed at protecting customers’ interests. These changes will make the auto-debit system more secure and transparent than before. These rules will directly benefit millions of people whose EMIs, subscriptions, or bills are automatically deducted from their accounts every month. These new rules, issued under the “Digital Payments – e-Mandate Framework, 2026,” apply to all recurring payments, such as subscriptions, utility bills, and mutual fund (SIP) payments. Under the new rules, customers must register once before any auto payment can be initiated. Additional authentication will also be required. This means that no auto debit will be activated without your permission.
Get alerts 24 hours before the debit
The biggest change is that the bank or company will now be required to notify the customer at least 24 hours before each auto-payment. This alert will include the company name, payment amount, date, and other important information. This will allow the customer to prevent any errors or unwanted transactions in time.
No OTP required for payments up to Rs 15,000
To simplify small payments, the central bank has set a new limit. Auto-debit payments up to Rs 15,000 will no longer require an OTP. However, for essential payments like insurance premiums, mutual funds, and credit card bills, this limit has been raised to Rs 1 lakh.
Freedom to modify, discontinue e-mandate
Under the new rules, users will have the right to change or completely disable their e-mandate at any time. This will give them complete control over their funds and prevent unwanted payments.
Auto payment to continue even in case of a new card
If you change your debit or credit card, you no longer need to set up auto payments again. Previously linked e-mandates will automatically be linked to the new card, ensuring seamless EMI or bill payments.
New rules will be applicable to these services
These new rules apply to OTT subscriptions, insurance premiums, electricity and water bills, EMIs, and all other auto payments made using cards, UPI, or prepaid methods. However, these rules will not apply to auto recharges for FASTag and National Common Mobility Cards.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
