The Reserve Bank of India has introduced a major change aimed at making digital payments more seamless and reliable. Under the new rules, recurring payments up to ₹15,000 can now be processed without requiring an OTP every time, provided users have already registered an e-mandate.

An e-mandate is essentially a pre-approved instruction that allows banks or payment platforms to automatically deduct payments such as SIPs, insurance premiums, EMIs, OTT subscriptions, or utility bills on a fixed date. Earlier, even after setting up this mandate, users often had to authenticate payments repeatedly using OTPs, which sometimes led to failed transactions due to network issues or missed alerts.

With the new update, payments up to ₹15,000 will go through automatically without any additional authentication step. For certain categories like mutual funds, insurance premiums, and credit card bills, the limit has been significantly increased to ₹1 lakh. This means larger and more critical financial commitments can also be processed smoothly.

One of the biggest advantages of this move is its impact on SIPs (Systematic Investment Plans). Investors who rely on monthly SIPs often faced issues when payments failed due to OTP delays or missed approvals. Now, with fewer interruptions, SIP contributions are expected to become more consistent, helping investors maintain discipline and avoid missed investment opportunities.

Another important update is that if a user replaces their debit or credit card, the existing e-mandate will automatically shift to the new card. This removes the hassle of setting up mandates again and ensures continuity in payments.

Overall, this decision by the RBI is likely to improve the reliability of digital transactions, reduce payment failures, and make everyday financial activities—from subscriptions to investments—much more convenient for users.