UPI AutoPay and e-mandates for subscriptions: the RBI rules in plain English

If you charge customers on a schedule (a software plan, a subscription box, a refill), India's recurring-payment rules shape how you do it. Here is the short version. It is general information, so check current RBI circulars and your payment provider's guidance.

The core idea: authorise once, then notify

For recurring card and UPI payments, the customer sets up a mandate: a one-time authorisation, with extra authentication, that allows a merchant to debit up to a stated amount on a stated schedule. After that, each charge does not need a fresh OTP, as long as it fits the rules.

The rules that matter

• Pre-debit notification. The customer must be told before each debit, at least 24 hours ahead. Banks and payment providers usually send this, but you should still communicate clearly.
• The ₹15,000 threshold for cards. For recurring card payments above ₹15,000, the customer must approve each transaction with additional authentication, so you cannot silently renew large amounts. Below that amount, charges can run automatically within the mandate.
• UPI AutoPay limits. Per-debit limits depend on the bank and the merchant category. A limit of ₹5,000 is a common default, and some categories allow higher amounts. Check with your provider.
• Easy withdrawal. Customers must be able to cancel the mandate easily, in their bank or UPI app and with you.
• Transparency. The amount, frequency and end date should be shown at setup.

How free trials fit

A trial is usually modelled as a mandate that is authorised on day one, with the first charge scheduled for a later date, such as 7 days out. The customer pays nothing during the trial and can cancel before the first charge. Show the date and amount clearly at sign-up, and include GST in the displayed total. Our own sign-up works this way, via Razorpay Subscriptions.

Designing for large amounts

If your yearly plan costs more than ₹15,000 on a card, expect the bank to ask for approval at each renewal. Two ways to cope:

1. Offer monthly billing as the automatic option, and yearly as a manual renewal with a reminder and payment link.
2. Ask customers to use net banking or another method where the rules differ.

See monthly vs yearly billing for the customer side of that choice.

A compliance checklist for merchants

• Show amount, frequency, first charge date and cancellation method before the customer authorises.
• Send reminders before debits, even if the bank also does.
• Handle failed debits: retry rules, grace periods and clear messages (failed payments).
• Keep a record of consent with the time and what was shown.
• Make cancellation easy, and honour it immediately.

What to do next

Write the exact text customers will see when they authorise: plan, amount including GST, the date of the first charge and how to cancel. If you cannot explain it in three lines, simplify the offer.