RBI Updates Recurring Payment Rules: Auto-Debit Limit Raised to Rs 15,000

By: Harsh Vardhan

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Updated on: 22-Apr-2026 07:00 PM

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The Reserve Bank of India (RBI) has revised its guidelines for recurring digital payments. Users can now make auto-debit payments of up to Rs 15,000 without entering a one-time password (OTP) for every cycle, provided the mandate has been approved once. This change aims to reduce payment failures caused by missed authentication requests.

Key Highlights

• RBI allows auto-debit payments up to Rs 15,000 without OTP after initial mandate approval
• Limit for insurance, mutual funds, and credit card bills increased to Rs 1 lakh
• Users must authenticate the first mandate but not subsequent payments within the set limits
• Banks will continue to send pre-debit alerts and payment confirmations for each transaction

Key Changes in RBI Guidelines

Under the new rules, recurring payments up to Rs 15,000 can be processed automatically after the initial approval. This applies to common transactions such as OTT subscriptions, SIP instalments, utility bills, and broadband payments. The RBI has also increased the limit for select categories. For insurance premiums, mutual fund investments, and credit card bill payments, the limit is now Rs 1 lakh.

Users must still authenticate the initial mandate using OTP or another verification method. Once approved, recurring payments within the specified limits will not require repeated authentication. This update is expected to make regular payments more convenient for users.

Impact on Users and Payment Platforms

Banks and payment platforms will continue to send pre-debit alerts before each transaction. These notifications will include the amount, merchant name, and scheduled date. Users will also receive a confirmation after the payment is completed.

Many users previously faced issues with recurring payments failing due to missed OTPs, network problems, or timing errors. The new rules aim to reduce these failures by removing the need for repeated authentication for smaller transactions. This should help users maintain uninterrupted services and avoid late fees.

For higher-value recurring payments, such as insurance and mutual funds, the increased limit of Rs 1 lakh offers more flexibility. Users dealing with larger payments will benefit from fewer verification steps.

User Responsibilities Remain Important

Despite these changes, users are advised to review their active mandates regularly. This helps avoid unnecessary charges from unused subscriptions or duplicate services. Staying informed about active mandates ensures better control over recurring expenses.