RBI Updates Auto-Debit Rules for Cards & UPI
The Reserve Bank of India has revised how automatic payments work on your credit cards, debit cards, and UPI. These changes affect recurring payments like OTT subscriptions, insurance premiums, and EMIs. If you use auto-pay for anything, these new rules change how your bank will process those transactions — and what happens if something goes wrong.
The average Indian urban household now runs 4–6 recurring auto-debits every month — from Netflix and Spotify to SIP instalments and insurance premiums — often without realising how much quietly leaves their account each month.
Any auto-debit above ₹15,000 on your card or UPI will now require extra authentication, meaning your bank must notify you and get confirmation before pulling the money — giving you more control over large recurring payments.
Key Takeaways
Review all your active auto-debit mandates on your bank's app or net banking — cancel any subscriptions you no longer use to avoid silent money leaks.
For recurring payments above ₹15,000, expect your bank to send an additional authentication step (like an OTP) before the debit goes through — keep your registered mobile number updated.
If an auto-debit fails due to the new rules, check your bank's notification immediately — a missed insurance premium or SIP can have serious consequences; pay manually if needed.
If you pay for subscriptions, SIPs, insurance premiums, or loan EMIs through auto-debit on your credit card, debit card, or UPI, the RBI's updated rules are directly relevant to you. The central bank has tightened the framework around recurring transactions to reduce unauthorised debits and give customers more visibility into what leaves their account automatically.
The most important change is around the pre-debit notification requirement. Banks and payment apps are now required to alert you — typically 24 hours before — whenever an automatic payment is about to be processed. This means you get a heads-up before money moves, not a surprise SMS after it already has. For amounts above ₹15,000, an additional factor of authentication (like an OTP) is mandatory before the debit is executed.
These rules also clarify how new e-mandates are registered. Whether you're setting up a new SIP on a mutual fund platform or subscribing to an annual plan on an app, the registration process must now follow a standardised authentication flow. This protects you from shady apps silently signing you up for recurring charges you never clearly approved.
For most people, the day-to-day impact will be minimal if your bank details are up to date. But if your registered mobile number is old or your card has recently been renewed, auto-debits can fail — potentially causing a missed EMI, lapsed insurance, or a skipped SIP. Use a platform like GoCredit to track your loan EMIs and get timely reminders so nothing slips through the cracks.
Pro tip: Log into your bank's net banking portal once a month and check the 'Manage Mandates' section. Cancel anything you don't recognise or no longer use — it's one of the simplest ways to stop money from quietly leaking out of your account every month.
Manage Your EMIs Smarter
Open GoCredit App →