Definition
UPI AutoPay
UPI 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.
UPI AutoPay works through e-mandates registered inside your UPI app. You authorise a merchant once with a UPI PIN, setting a maximum amount and a frequency (daily, weekly, monthly or as-presented), after which debits happen automatically without re-entering the PIN for amounts up to the limit.
It is widely used for OTT subscriptions, mutual fund SIPs, insurance premiums, utility bills and loan EMIs. For larger recurring debits, NPCI rules require a pre-debit notification and, above a threshold, an additional factor of authentication, giving you a chance to review or cancel.
You can pause, modify or revoke any AutoPay mandate from the 'Mandates' or 'AutoPay' section of your UPI app, which is useful for stopping unwanted subscription renewals.
Related terms
- UPI MandateA UPI mandate is a standing instruction created on a UPI app that pre-authorises a merchant to collect a one-time future or recurring payment up to a set limit.
- 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.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.