No More OTP Every Month? RBI’s New ₹15,000 Auto-Debit Rule Explained Simply

The Reserve Bank of India has quietly made a big change that could affect your daily payments. From April 2026, recurring payments up to ₹15,000 will no longer need an OTP every time.

This means once you approve a payment—like a Netflix subscription or SIP, future payments can go through automatically. But is it all convenience, or is there a catch?

What Has Actually Changed?

Earlier, many auto-debits required frequent OTP approvals, which often led to failed payments. Now, RBI has simplified this by allowing one-time approval through authentication.

After that, payments up to ₹15,000 will be processed without repeated OTPs.

However, anything above ₹15,000 will still need user verification, ensuring that higher-value transactions remain secure.

Why RBI Made This Move?

The idea is simple—reduce friction but keep control intact.

Recurring payments like OTT subscriptions, utility bills, and EMIs are predictable. Asking for OTP every time created unnecessary hassle and increased transaction failures.

At the same time, RBI has kept safeguards like alerts and limits to prevent misuse.

Where the Limit Goes Up to ₹1 Lakh?

Interestingly, RBI has relaxed rules further for certain important financial commitments.

For payments like insurance premiums, mutual fund SIPs, and credit card bills, the no-OTP limit can go up to ₹1 lakh per transaction.

This recognises that these are essential and often high-value payments that shouldn’t fail due to OTP issues.

How the New System Works?
 

RBI has also made it mandatory for banks to send alerts before and after every transaction.

Understand This New System with An Example

Imagine Rohan, who has a ₹1,200 monthly OTT subscription and a ₹5,000 SIP.

Earlier, if he missed the OTP notification, his payment could fail. Now, after one-time approval, both payments will go through automatically every month.

But if he sets up a ₹20,000 auto-debit for something else, he’ll still need OTP approval each time.

Conclusion

This move will make digital payments smoother and reduce failed transactions. But it also puts more responsibility on users to track their subscriptions and spending.

With fewer OTP interruptions, unnoticed deductions could become easier if you’re not paying attention.

In short, RBI has made payments simpler—but not careless-proof.