RBI Policy: Customers no longer need to input OTP for e-mandates up to Rs 15,000 for recurring transactions

The Reserve Bank of India on Wednesday said auto-transactions up to Rs 15,000 no longer require customers to authenticate such payments manually with a One Time Password (OTP). This is after the regulator received requests from several stakeholders to increase the limit under the framework to facilitate payments of larger value like subscriptions, insurance premia, education fee, among others.

"To further augment customer convenience and leverage the benefits available under the framework, it is proposed to enhance the limit from Rs 5,000 to Rs 15,000 per recurring payment," Shaktikanta Das, Governor, RBI said.

The regulator is expected to issue detailed instructions in this regard shortly.


The new rule for processing recurring payments was first issued by RBI in August 2019. RBI’s new rules mandate that banks can only process auto-debit transactions if they send a pre-debit notification to customers at least 24 hours before the payment. The current framework on processing of e-mandate based recurring payments, requires for an Additional Factor of Authentication (AFA) for payment value above Rs 5000. These would need customers to authenticate such payments manually with a one-time password (OTP).

Till date, over 6.25 crore mandates have been registered under this framework, including for over 3,400 international merchants. Industry estimates suggest such payment volumes through recurring transactions amount to $2 billion in annualised gross transaction value (GTV).