The Reserve Bank of India (RBI) has recently updated its guidelines for auto-debit transactions, effective from October 1. These changes will impact individuals who have set up recurring payments or online subscriptions for various services such as insurance premiums, rent, utility bills, or systematic investment plans (SIPs), as re-authentication will now be required for these payments.

What is E-Mandate?

E-mandate, introduced by the RBI, enables users to authorize their banks to automatically debit a predetermined amount from their bank accounts. This feature streamlines payment processes, allowing users to make payments conveniently without the risk of late payment charges or penalties. For businesses, e-mandates ensure a consistent flow of payments from customers, benefiting both buyers and sellers.

Setting Up E-Mandate for Auto-Debit Payments

To establish an e-mandate for auto-debit payments, users have the option to link their debit cards or use net banking. While banks are working towards a unified platform for registering auto-debit payments, users can currently set up e-mandates through various platforms.

Leveraging UPI Autopay

Additionally, users can utilize UPI (Unified Payments Interface) to enable UPI autopay for their subscriptions. Certain platforms like Jio and Hotstar already offer the option to set up UPI autopay for tasks such as mobile recharges or subscribing to their services.

By leveraging e-mandate and UPI autopay features, users can enjoy the convenience of automated payments while ensuring seamless transactions for both individuals and businesses.