Missing due dates for mobile, OTT, electricity, or insurance bills can lead to late fees, service disruption, and unnecessary stress. This is where the Autopay or E-Mandate feature becomes highly useful. With Autopay, your bills are deducted automatically on the due date without requiring any manual action.
However, this automatic payment facility works strictly under the guidelines issued by the Reserve Bank of India (RBI). These rules ensure both convenience and security for users. Let’s understand how Autopay works, its benefits, and the most important rules every user should know.
What Is Autopay and How Does It Work?
Autopay is a system that allows your bank to automatically deduct recurring payments from your account on a fixed schedule. You can activate it through your bank’s website, mobile app, or directly on a merchant platform such as OTT services, electricity boards, or insurance portals.
Autopay is commonly used for:
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Mobile and DTH recharges
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OTT subscriptions
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Insurance premiums
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Electricity, gas, and water bills
Once enabled, the payment is deducted automatically every month without the need for manual approval.
Types of Autopay Mandates
RBI allows two types of Autopay mandates:
Fixed Mandate:
The amount remains the same every billing cycle, such as a fixed OTT subscription fee.
Variable Mandate:
The amount changes every month, as seen in electricity, water, or gas bills.
After successful registration, Autopay usually becomes active within seven working days. If your bill is due during this period, you must make the payment manually for that cycle.
Charges and Balance Requirements
If Autopay is linked to your debit card or bank account, you must ensure sufficient balance is available on the due date. If the payment fails due to low balance, the bank may charge a penalty. This charge is usually around 2 percent of the transaction amount or a minimum of ₹500, whichever is higher.
RBI’s Rules for Autopay Transactions
The current Autopay framework introduced by RBI from October 1, 2021, focuses strongly on customer security and fraud prevention. According to these rules:
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For transactions up to ₹15,000, no OTP is required.
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For transactions above ₹15,000, OTP confirmation is mandatory.
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For insurance premiums and mutual fund investments, the transaction limit goes up to ₹1 lakh.
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For credit card bill payments, Standing Instructions apply only up to ₹1 lakh. Any amount above this requires OTP approval every time.
When Is Additional Factor Authentication Required?
Additional Factor Authentication (AFA) is required in these situations:
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While setting up a new recurring transaction above ₹15,000.
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Every time a deduction exceeds ₹15,000.
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No transaction can be completed without the customer’s approval.
Banks also send a pre-transaction alert at least 24 hours before every Autopay deduction. This alert includes an option to cancel or pause the payment if required, giving full control to the customer.
Information Required for E-Mandate Registration
To activate Autopay, users generally need to provide:
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Consumer ID or account number
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Maximum payment limit (for variable bills)
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Mobile number and email ID for alerts
Only RBI-approved merchants and payment platforms are allowed to offer E-Mandate services.
What Happens If Your Card Is Lost or Blocked?
If your debit or credit card is lost, stolen, or blocked, all linked Autopay mandates stop automatically. You will need to delete the old mandate and register again using your new card.
In such cases, the bank is not responsible for delayed or missed payments. It remains the customer’s responsibility to ensure bills are paid on time.
Key Takeaways
Autopay is a powerful tool that helps manage regular expenses without missing deadlines.
Transactions up to ₹15,000 do not need OTP, while higher amounts require verification.
Insurance and mutual fund transactions are allowed up to ₹1 lakh under Autopay.
Pre-transaction alerts ensure transparency and customer control.
Lost or blocked cards automatically deactivate linked mandates.
Final Word
RBI’s Autopay rules are designed to create a perfect balance between ease of use and financial security. While Autopay saves users from the stress of forgotten due dates, it also ensures that every transaction is safe, authorized, and transparent. If you manage multiple subscriptions or monthly bills, Autopay can be a smart digital solution when used responsibly and within RBI’s approved limits.
