The National Payments Corporation of India (NPCI) has launched UPI AutoPay with plans for interoperability, aiming to simplify and expand recurring digital payments by allowing seamless movement of mandates across apps, potentially transforming the landscape of automatic transactions in India.
India’s National Payments Corporation has rolled out UPI AutoPay, a feature designed to let consumers set up recurring payments once and then let authorised debits run automatically. The system is aimed at regular bills such as streaming subscriptions, insurance, mutual fund investments and loan repayments, with users asked to review the merchant name, amount, frequency and mandate validity before approving the instruction with their UPI PIN. The move is intended to reduce missed renewals and overdue instalments in a market where digital payments are deeply embedded in everyday spending.
The process works through a mandate, which is essentially a standing permission for future debits. In practice, a customer opens a UPI app, chooses the recurring-payment option, checks the details shown on screen and confirms the mandate. Once approved, eligible payments can be collected without repeated authentication each time. NPCI says users will also receive a pre-debit alert at least 24 hours before the money is taken, giving them time to review or stop a charge if needed.
For loan and card repayments, the feature is meant to simplify monthly dues by allowing users to enter the amount, due date and tenure, then authorise the recurring debit through a supported app or lender flow. NPCI has said the categories covered include over-the-top entertainment services, utilities, insurance, mutual funds and EMIs. The Reserve Bank of India has also lifted the limit for certain recurring transactions without additional authentication to Rs. 1 lakh, a step that analysts say should make larger digital payments easier to automate.
The bigger change may still be ahead. Reports from Gadgets 360 and Mint say NPCI is working on interoperability for UPI AutoPay, which would let consumers move active mandates between apps without cancelling and recreating them, while also reducing the chance that merchants become tied to a single payment gateway. That would make recurring digital payments more portable, though users would still need to keep an eye on unused subscriptions, failed debits and mandate settings to avoid unwanted charges.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
