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If you often forget to pay your bills or loan EMIs on time, Autopay could be the perfect solution for you. This smart and secure payment facility automatically deducts your dues each month from your debit or credit card, helping you avoid late fees, penalties, and unnecessary stress.

Let’s understand what Autopay is, how it works, and how you can activate it to make your financial life hassle-free.

What Is Autopay and How Does It Work?

Autopay is an e-mandate system that allows your bank or card issuer to automatically deduct recurring payments such as EMIs, utility bills, or subscription fees from your account on a specific date every month.

When you set up Autopay, you authorize your bank or card provider to withdraw a pre-defined amount (for fixed bills like OTT subscriptions) or a variable amount (for fluctuating bills like electricity or mobile payments). Once registered, the Autopay service becomes active within seven days.

You can set it up easily using your bank’s website, mobile app, or through your service provider’s portal. Most financial institutions also allow you to modify, pause, or cancel the Autopay option anytime through their digital platforms.

Security Rules and OTP Verification

To ensure complete security, the Reserve Bank of India (RBI) has laid down specific guidelines for Autopay transactions.

• Transactions up to ₹15,000 can be processed without an OTP.

• For higher transactions, an OTP verification is mandatory.

• In the case of mutual fund or insurance premium payments, this OTP-free limit extends to ₹1 lakh.

Additionally, before each scheduled payment, users receive a notification at least 24 hours in advance, giving them time to review or cancel the transaction if needed. This added transparency ensures that users remain in control of their finances while enjoying the convenience of automation.

What Happens If Your Card Is Lost or Blocked?

If your debit or credit card is lost, stolen, or blocked, your existing Autopay setup will automatically become inactive. In such cases, you’ll need to re-register a new e-mandate once your replacement card is issued.

Until this is done, payments may not be processed on time, so it’s important to update your Autopay settings promptly to avoid missing EMI or bill deadlines.

Why You Should Use Autopay

Autopay is not just about convenience—it’s about creating financial discipline. By ensuring that your bills and EMIs are paid on time, it helps maintain a positive credit score and prevents unnecessary late fees.

Here are the top reasons to activate Autopay today:

No more missed due dates: Payments happen automatically, reducing human error.

Avoid penalties: Timely deductions save you from late fees or interest charges.

Simplifies money management: One-time setup ensures monthly consistency.

Secure and transparent: RBI’s rules make it safe and easy to monitor.

Supports multiple bill types: From loans to subscriptions, everything is covered.

However, it’s crucial to maintain sufficient balance in your bank account. Autopay can only process payments if funds are available—otherwise, transactions may fail, leading to charges or service interruptions.

Final Thoughts

Autopay is a simple, reliable, and secure way to handle your monthly financial commitments without stress. Whether you’re managing EMIs, utility bills, or subscription renewals, this automated system ensures everything runs smoothly in the background.

By setting up Autopay, you’re not just saving time—you’re also building a strong foundation for financial discipline and peace of mind. Just remember to keep your account funded and review your notifications regularly to stay in full control.

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