RBI Changes Auto-Debit Rules: Your Netflix, SIPs and bill payments may get easier

The RBI has introduced new auto-debit rules to improve transparency and user control. From pre-debit alerts to flexible e-mandates, here’s how the changes will impact recurring payments and subscriptions.

Post Published By: Ayushi Bisht

Updated : 22 April 2026, 6:50 PM IST

The move is designed to reduce unauthorized transactions (Img: Internet)

New Delhi: The Reserve Bank of India has announced significant changes to auto-debit regulations under its updated “Digital Payments – e-Mandate Framework, 2026.” The revised rules aim to enhance customer protection, transparency, and control over recurring transactions.

These changes will impact millions of users who rely on automatic deductions for monthly expenses such as utility bills, insurance premiums, loan EMIs, and subscription services.

Rupee Gains 47 Paise Against US Dollar Amid Iran-US Ceasefire and RBI Policy Stability

Mandatory Approval Before Activation

Under the new framework, auto-debit services will require a one-time registration along with additional authentication before activation. This ensures that no recurring payment is initiated without explicit customer consent.

The move is designed to reduce unauthorized transactions and strengthen trust in digital payment systems.

Advance Alerts for Every Transaction

One of the most notable updates is the requirement for issuers to notify customers at least 24 hours before any scheduled auto-debit. The alert will include key details such as the merchant name, transaction amount, and date.

This advance notice gives users sufficient time to review or cancel payments, helping prevent errors or unwanted deductions.

Revised Limits for OTP Requirements

To simplify smaller transactions, the RBI has removed the need for one-time password (OTP) authentication for auto-debit payments up to ₹15,000. For essential categories such as insurance premiums, mutual fund investments, and credit card bill payments, the threshold has been increased to ₹1 lakh.

This change balances convenience with security, particularly for routine financial commitments.

Greater Flexibility for Users

Customers will now have the option to modify or cancel their e-mandates at any time. This provides greater flexibility and ensures that users retain full control over their recurring payments.

Rupee Weakens, Closes at 93 Against the Dollar; Eyes Fixed on Global Tensions and RBI Decision

Additionally, if a debit or credit card linked to an e-mandate is replaced, the existing mandate will continue without requiring a fresh setup. This ensures uninterrupted payments for critical services.

Wide Coverage Across Payment Types

The revised rules apply to a broad range of recurring payments, including OTT subscriptions, electricity and water bills, insurance premiums, and systematic investment plans (SIPs). Payments made through cards, UPI, and prepaid instruments are also covered.

However, certain services such as auto recharges for FASTag and National Common Mobility Cards remain outside the scope of these changes.