For many, forgetting to pay monthly bills like mobile recharge, OTT subscriptions, electricity, or insurance is a recurring issue. To solve this, the Reserve bank of India (RBI) has issued clear rules for the Autopay (E-Mandate) system, which allows automatic deductions from your bank account. Here’s everything you need to know.
1. What is RBI Autopay (E-Mandate)?
The Autopay or E-Mandate feature is a facility offered by banks and payment service providers that lets you:
· Authorize automatic monthly deductions from your bank account for recurring payments.
· Avoid missed payments and late fees.
· Easily manage subscriptions for mobile, electricity, insurance, and OTT platforms.
Think of it as setting your bills on autopilot, so you never have to worry about due dates again.
2. How Autopay Works
1. Set Up an E-Mandate: Link your bank account or card to the service provider.
2. Authorize Payments: Approve the monthly amount and frequency.
3. Automatic Deduction: The system deducts the bill on the scheduled date.
4. Notification: Banks or service providers usually send SMS/email alerts before and after payment.
Note: You retain control—you can modify, pause, or cancel the mandate at any time.
3. Key RBI Guidelines for Autopay
The RBI has issued rules to make Autopay secure and customer-friendly:
· Maximum Limit: customers can set a maximum cap on monthly deductions.
· Two-Factor Authentication (2FA): Mandatory for initial setup to prevent fraud.
· Pre-Notification: Banks must notify you 2–3 days before each debit.
· Easy Revocation: customers can cancel or modify mandates without hassle.
· Transparency: Clear information on amount, due date, and merchant name.
These guidelines ensure security, transparency, and control over automatic payments.
4. Benefits of Autopay
· Never Miss a Payment: Avoid late fees and service interruptions.
· Convenience: One-time setup saves repeated manual payments.
· Budget Management: You can track recurring payments easily.
· Security: RBI’s rules and bank 2FA make it a safe option.
Tip: Always check your bank statements to ensure correct deductions.
5. Who Can Use Autopay?
· customers with savings or current accounts in RBI-regulated banks.
· Users with UPI, debit cards, or credit cards linked to recurring payment services.
· Individuals paying for mobile plans, OTT subscriptions, utilities, EMIs, or insurance premiums.
Small or one-time payments are generally not suitable for Autopay.
6. How to Set Up Autopay
1. Log in to your bank account or payment app.
2. Select ‘Autopay’ or ‘E-Mandate’ under bill payments.
3. Enter the merchant details (biller name, account number, etc.).
4. Set maximum amount and frequency (monthly, quarterly, yearly).
5. Authorize via OTP/2FA to activate the mandate.
Once done, your bills will be automatically deducted as per schedule.
7. Conclusion
The RBI Autopay (E-Mandate) system is a secure and convenient way to manage recurring payments. By following the RBI guidelines, you can:
· Avoid late fees and service disruption
· Maintain control over automatic deductions
· Enjoy hassle-free bill payments
For anyone struggling with timely payments, setting up Autopay can be a financial lifesaver.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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