RBI's New Security Measures for Digital Transactions: OTP Mandatory for Auto-Debit Payments Above ₹15,000
The Reserve Bank of India (RBI) has issued new guidelines under the 'E-Mandate Framework 2026' to enhance the security of digital payments in the country. According to the new rules, customer approval in the form of an OTP (One-Time Password) will now be mandatory for any auto-debit payment exceeding ₹15,000.
This rule will primarily apply to OTT subscriptions, utility bills, and other recurring payments. The RBI aims to ensure customer consent for large transactions and curb fraudulent incidents where money is deducted from accounts without knowledge. To facilitate customers, the RBI has provided relief for significant categories such as mutual fund investments, insurance premiums, and credit card bill payments, raising the auto-debit limit without OTP to ₹1,00,000.
This will allow larger investments and mandatory payments to be completed on time without any hindrance. However, the ₹15,000 limit will still apply to other general merchant payments. This hybrid model is an effective attempt to balance security and convenience in the digital banking ecosystem.
Another important feature of the new framework is that banks are now required to notify customers at least 24 hours before any transaction. This pre-debit notification will clearly state the payment amount and the merchant's name.
Notably, customers will also have the option to 'opt-out' with this notification, allowing them to immediately stop any erroneous or unnecessary payments. These RBI rules have come into effect immediately for cards, UPI, and digital wallets, strengthening customers' control over their money.
Publish with Us: Wish to feature your personal or organizational milestones, success stories, or press releases in Loktej English? Contact us, and we will guide you through our publication process.
Feedback & Corrections: We strive for accuracy. If you spot an error, have feedback, or object to the content of this article/press release, please notify us at loktejonline [at] gmail [dot] com. We will review the matter and rectify it at the earliest.
