Definition
Recurring Payments (e-Mandate Limits)
RBI rules govern auto-debits for recurring payments, requiring pre-debit notifications and an additional authentication for debits above a specified per-transaction threshold.
For card and UPI-based recurring payments set up via e-mandates, RBI requires the issuer to send a pre-debit notification before each auto-debit, and for amounts above a per-transaction threshold, an additional factor of authentication must be obtained each time.
This framework protects customers from unexpected or runaway subscription charges, giving them a chance to review and, if needed, cancel before money is debited. Below the threshold, debits proceed automatically once the mandate is set.
It applies across subscriptions, SIPs and bills on cards and UPI AutoPay, balancing the convenience of automation with consumer control over recurring deductions.
Related terms
- UPI AutoPayUPI AutoPay is an NPCI feature that lets you set up recurring payment mandates on a UPI app so approved sums are auto-debited for subscriptions, SIPs, bills and EMIs.
- NACH e-MandateA NACH e-mandate is an electronic authorisation that lets a company auto-debit recurring amounts — EMIs, SIPs, premiums — from your bank account through the National Automated Clearing House.
- Two-Factor Authentication (Payments)Two-factor authentication requires two independent proofs of identity — such as a password plus an OTP — to authorise a payment, a long-standing RBI requirement for many transactions.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.