The new rules will apply to all types of auto payments—such as OTT subscriptions, insurance premiums, bill payments, EMIs, etc.—that are processed via cards, UPI, or prepaid instruments. The RBI has implemented new regulations regarding e-mandates. The Reserve Bank of India (RBI) put its new guidelines concerning e-mandates into effect starting Tuesday. Under these new rules, customers are now required to complete a one-time registration process—involving an additional layer of verification—before initiating any form of online auto payment. Furthermore, the respective banks or financial institutions involved must provide a notification 24 hours in advance before deducting any amount from a customer's account. These new regulations cover all recurring auto payments—including OTT subscriptions, insurance premiums, bill payments, EMIs, and similar transactions—that are executed using cards, UPI, or prepaid payment instruments. The RBI has also clarified that customers will be ac...
The new rules will apply
to all types of auto payments—such as OTT subscriptions, insurance premiums,
bill payments, EMIs, etc.—that are processed via cards, UPI, or prepaid
instruments. The RBI has implemented new regulations regarding e-mandates.
The Reserve Bank of India
(RBI) put its new guidelines concerning e-mandates into effect starting
Tuesday. Under these new rules, customers are now required to complete a one-time
registration process—involving an additional layer of verification—before
initiating any form of online auto payment. Furthermore, the respective banks
or financial institutions involved must provide a notification 24 hours in
advance before deducting any amount from a customer's account.
These new regulations
cover all recurring auto payments—including OTT subscriptions, insurance
premiums, bill payments, EMIs, and similar transactions—that are executed using
cards, UPI, or prepaid payment instruments. The RBI has also clarified that
customers will be accorded the flexibility to modify or completely cancel their
e-mandates at any time. Consequently, customers will now exercise greater
control over the funds being debited from their accounts. This move will have a
direct impact on the millions of individuals whose bank accounts are subject to
automatic monthly deductions.
Full Details Must
Be Provided:
The most significant change is that, henceforth, it will be mandatory to send a
notification to the customer at least 24 hours prior to every auto-payment.
This notification will include the name of the concerned company, the payment
amount, the date, and other essential details. This ensures that, in the event
of any discrepancy, the customer can take immediate action. If the customer so
desires, they may also choose to stop the payment during this 24-hour window.
However, this prior notification requirement will not apply to auto-recharges
for FASTag and the National Common Mobility Card.
Auto-Payments Will
Automatically Link to New Cards: According to the new regulations, if a
customer's credit or debit card is replaced—or if a new card is issued—their
previously established auto-payment mandates (e-mandates) will automatically
link to the new card. This eliminates the need for customers to repeatedly
update their settings. Consequently, payments such as insurance premiums, EMIs,
and other recurring bills will continue without interruption.
How to View
Auto-Pay Mandates in Your UPI App: Open your UPI app. Navigate to the
'Profile' or 'Settings' section located at the top of the screen. From there,
select the 'Auto-Pay' or 'Mandates' option. You will now be able to view all
your active and expired mandates. Here, you can check which company or service
is receiving the funds, the specific amount being deducted, the duration for
which the deductions will continue, and the scheduled date for the next
deduction.
No OTP Required
for Payments Up to ₹15,000: Rules regarding payment amounts have also undergone
changes. Under the new provisions, recurring auto-debit payments of up to
₹15,000 can now be completed without the need to enter an OTP each time.
However, for amounts exceeding this limit, an OTP will be required for every
transaction. Nevertheless, for insurance premiums, mutual fund investments, and
credit card bill payments, this limit has been raised to ₹100,000 per
transaction.
No Charges for
Customers:
The RBI has also clarified that no additional charges will be levied on
customers for utilizing the e-mandate facility. Furthermore, in the event of
any dispute or erroneous transaction, appropriate mechanisms will be made
available for filing complaints and seeking resolution.
Editorial: Empowering the Investor —
The RBI’s E-Mandate Evolution
By
Editorial Board, Stock Market MF News
The Reserve Bank of India’s latest consolidation of the Digital Payments – E-mandate Framework (2026) is more
than just a regulatory update; it is a significant victory for the retail
investor and the "SIP generation." For years, the lack of
transparency in recurring debits led to "subscription fatigue" and,
occasionally, financial friction where funds were debited without sufficient
balance or prior warning.
For Stock Market and Mutual Fund investors, this is a game-changer. The increase in the AFA-free limit to ₹1,00,000 for mutual
fund subscriptions and insurance premiums acknowledges the growing ticket sizes
of Indian household investments. It balances the need for
high-velocity digital growth with the ironclad security of Additional Factor
Authentication (AFA) during the initial registration.
From a market perspective, this stability in payment pipelines ensures
lower "bounce rates" for AMCs and insurers, fostering a more
disciplined investment culture. As we move toward a more automated economy,
these rules ensure that while our money works on autopilot, we remain firmly in
the pilot’s seat.
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