Hyderabad, April 22. The Reserve Bank of India (RBI) has issued new guidelines under the ‘e-Mandate Framework 2026’ to make digital payments more secure in the country.
According to the new rules, customer approval via OTP will now be mandatory for any auto-debit payment exceeding Rs 15,000. This rule will mainly apply to OTT subscriptions, utility bills, and other recurring payments.
The RBI aims to ensure customer consent in large transactions and curb fraudulent incidents where money is deducted from accounts without knowledge.
Keeping customer convenience in mind, the Reserve Bank has provided relief for important categories such as mutual fund investments, insurance premiums, and credit card bill payments. For these financial services, the auto-debit limit without OTP has been increased to Rs 1,00,000.
This will allow large investments and mandatory payments to be completed on time without any interruption. However, for other general merchant payments, the limit of Rs 15,000 will continue to apply. This hybrid model is an effective attempt to balance security and ease within the digital banking ecosystem.
Another important feature of the new framework is that banks must now inform the customer at least 24 hours before any transaction. This pre-debit notification will clearly mention the payment amount and the merchant’s name.
Most notably, customers will also receive an ‘opt-out’ option along with this notification, allowing them to immediately stop any incorrect or unnecessary payment.
These RBI rules have come into effect immediately for cards, UPI, and digital wallets, giving customers stronger control over their money.
