Mumbai: For millions of digital users, recurring payments have quietly become part of daily life — from OTT subscriptions and utility bills to EMIs and insurance premiums. Now, the Reserve Bank of India has updated the rules governing these payments, aiming to make the process smoother while retaining safeguards.
Under the revised “Digital Payments – E-mandate Framework, 2026”, the central bank has set a threshold of ₹15,000 per transaction for automatic recurring payments without the need for additional authentication such as OTP.
This means that once a customer registers an e-mandate, payments within this limit can go through without requiring approval each time.
What changes for users
The biggest change is in convenience. Earlier, many recurring payments required repeated authentication, which often disrupted services when users missed notifications or OTPs.
Now, for routine payments like subscriptions, utility bills or memberships, the system allows automatic debit up to ₹15,000, provided the user has already completed a one-time registration with authentication.
However, transactions above this limit will continue to require an additional layer of verification.
Higher limit for key payments
The framework also introduces a higher ceiling for certain essential financial transactions.
Payments such as insurance premiums, mutual fund subscriptions and credit card bill payments can now be processed without additional authentication for amounts up to ₹1 lakh per transaction.
This recognises that such payments are often higher in value and regularly scheduled, making repeated authentication less practical.
How the system works
To use the e-mandate facility, customers must first complete a one-time registration process. This includes authentication through existing security measures.
Once registered, the mandate allows automatic deductions within the approved limit and validity period.
Each mandate must clearly specify how long it will remain active, and users retain the option to modify or cancel it at any time.
For variable payments, such as fluctuating utility bills, users can set a maximum cap to ensure that debits remain within a defined range.
Built-in safeguards
Even as the RBI has eased recurring payment processes, it has retained several safeguards.
Users will receive notifications at least 24 hours before a transaction is processed. This gives them time to review or cancel the payment if required.
Post-transaction alerts will also be sent, ensuring transparency.
Any change to an existing mandate or its cancellation will require authentication, preventing unauthorised modifications.
The framework also mandates that registration of e-mandates should be free and that payment service providers must have proper grievance redressal systems in place.
Why the change matters
The move comes as digital payments continue to expand rapidly in India, with UPI, cards and prepaid instruments becoming widely used for both small and large transactions.
Recurring payments, in particular, have seen steady growth as more services move to subscription-based models.
By reducing friction in small-value recurring payments, the new rules are expected to improve user experience while maintaining security controls for higher-value transactions.
A more unified system
The updated framework replaces earlier guidelines and brings different payment methods — including cards, prepaid instruments and UPI — under a single regulatory structure for recurring transactions.
It applies to both domestic and cross-border payments, making the system more consistent across platforms.
For users, the changes may not be immediately visible, but over time, they are likely to reduce interruptions in routine payments.
For the financial system, it marks another step in balancing ease of use with consumer protection in an increasingly digital economy.
