From SIPs to OTT: How RBI’s New Rules Will Impact Your Auto Payments

The Reserve Bank of India has introduced a sweeping overhaul of rules governing recurring digital payments, aiming to eliminate surprise debits and strengthen customer control. The new Digital Payments – E-mandate Framework, 2026 consolidates existing regulations while introducing stricter safeguards, clearer notifications, and greater flexibility for users.

What has RBI changed in auto-debit rules?

At the heart of the new framework is a simple but significant change: customers will now be alerted well before any money is deducted automatically.

An issuer shall send a pre-transaction notification to the customer, at least 24 hours prior to the actual charge / debit.

This move is designed to ensure that users are never caught off guard by recurring payments such as subscriptions, utility bills, or SIPs.

How will customers approve recurring payments?

The RBI has tightened the process of setting up auto-debit mandates by introducing an additional layer of security. Customers must explicitly approve such instructions during registration.

“The mandate shall be registered only after successful validation of additional factor of authentication (AFA),” the RBI said.

This ensures that mandates cannot be activated without clear and verified user consent.

Can users modify or cancel mandates anytime?

Flexibility is another key pillar of the new rules. Customers are no longer locked into recurring payment instructions.

“The issuer shall provide the customer with a facility to modify the validity period or withdraw the e-mandate at any point of time,” it said.

This gives users the ability to adapt or cancel payments as their financial needs change.

Is it possible to stop a specific auto-debit before it happens?

Yes, the framework introduces an important safeguard allowing users to block individual transactions.

“The issuer shall provide a customer with a facility to opt-out of any particular transaction or the e-mandate,” the framework stated.

This means even if a mandate exists, users can prevent a specific debit if needed.

What are the new transaction limits?

The RBI has clarified thresholds for when additional authentication is required.

“All recurring transactions may be authorised without AFA up to ₹15,000 per transaction. Transactions above this amount shall be subject to AFA,” it said.

However, certain essential payments have been given higher limits.

“Payment of insurance premiums, subscription to mutual funds, and credit card bill payments may be made without AFA up to ₹1,00,000 per transaction,” the RBI added.

Will customers be notified after every transaction?

The framework ensures transparency not just before but also after a payment is processed.

“An issuer shall send a post-transaction notification to the customer,” it said, adding that details of grievance redressal must also be included.

Will users have to pay for this facility?

The RBI has made it clear that these protections come at no additional cost to customers.

“No charges shall be levied to the customer for availing the e-mandate facility for recurring transactions,” it said.

Why is this framework important?

By consolidating earlier circulars into a single, comprehensive system, the RBI aims to make digital payments safer, more transparent, and user-friendly. The new rules reflect a broader push to build trust in India’s rapidly growing digital payments ecosystem while giving customers more control over their money.

(With inputs from ANI)