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Using UPI Every Day? Hidden AutoPay Mandates Could Be Silently Deducting Money From Your Account

Samira Vishwas | July 29, 2026 8:25 PM CST

A free trial is supposed to be free. But what if that “free” sign-up quietly allows an app to charge your bank account every month later? The question has sparked an online debate after thousands interacted with a LinkedIn post by Lokesh Ahuja, assistant vice president (brand management), Nykaa. What started as an easy lesson for his mother to learn how to use UPI turned out to be a reminder that digital payments come with responsibilities that many users are not even aware of.

“Taught my mom to use UPI a few months back. Yesterday I was scrolling through her phone and noticed half a dozen AutoPay mandates. I asked her what she’d subscribed to.

“Nothing.”

Turns out they were all free trials.”

Like many users, Ahuja’s mother had signed up for services with the first month free. What she didn’t know was that she also agreed to recurring payments when she signed up.

As Ahuja explained in his post, “₹0 for the first 30 days.

But they also take permission to charge you automatically every month until you cancel.”

It’s a scenario that isn’t rare anymore. Many digital services, from OTT platforms and music apps to shopping memberships, cloud storage, and fitness subscriptions, are now asking users to create a UPI AutoPay mandate before activating a free trial. The first month may not cost a rupee, but the permission to debit future payments is already there.

If you are someone who routinely makes dozens of UPI payments in a week, such recurring deductions can easily go unnoticed. “And most people never notice a ₹79 deduction. Because it quietly disappears inside an account statement with a hundred other UPI transactions,” Ahuja wrote.

What Is A UPI AutoPay Mandate?

UPI AutoPay is a facility to enable users to authorise recurring payments directly from their bank accounts. You approve it once and the money is automatically taken out on the scheduled date, instead of having to approve each payment.

The feature is made for convenience. It helps users pay monthly subscriptions, utility bills, insurance premiums, SIPs and other recurring expenses without the fear of missing a deadline.

AutoPay itself is not the problem. This can happen when users forget that they created a mandate or when users don’t know that if you push continue when you are on a free trial, you are consenting to future deductions as well.

Why Free Trials Deserve a Second Look

Most apps are transparent about the fact that they set up a recurring payment mandate. The problem is that there are a lot of people rushing to get their hands on the free offer and just tapping through the screens without reading the details.

The trial period lasts a few weeks and then the subscription will renew automatically.

The amount is usually small — Rs 49, Rs 79 or Rs 99 — so it rarely sets alarm bells ringing. These charges are not a big debit but quietly get merged in the long list of daily UPI transactions.

So Ahuja called the AutoPay mandate “the real product” behind many free trials. That’s the real deal you get with a free trial. Not the first month for free. But the AutoPay mandate.

How To Check AutoPay Mandates That Are Active?

If you’ve ever taken advantage of a free trial, it’s worth taking a few minutes to check whether any active mandates are attached to your bank account.

Most UPI apps such as Google Pay, PhonePe, Paytm and BHIM have a dedicated AutoPay or Mandates section where users can view all active recurring payment approvals. Usually the page will show the merchant name, the frequency of your charges and the amount you are being charged for.

If you are finished using a service, cancel or revoke the mandate before the next billing cycle.

It’s also a good habit to check your bank statement every few weeks. A year can go by without noticing the accumulation of small, regular deductions.

Digital Literacy Is More Than Using UPI

What was most striking about Ahuja’s post had nothing to do with technology – it was about how roles within families are changing. It is funny how our parents used to fret about us crossing the road. Now we worry about them crossing over the internet.

He elaborated on that idea in the comments later: “The biggest risk was buying the wrong thing. Today, it’s agreeing to something you didn’t fully understand. AutoPay mandates, app permissions, location access, recurring subscriptions.

They’re all tiny decisions made in seconds, but they can last for months if not years.”

As UPI becomes a part of our daily life, digital awareness is not just about knowing how to make a payment. It’s also about knowing the permissions we give along the way. A quick audit of the AutoPay mandates you have in place today can help ensure your money is going exactly where you want it to go.

Priyanka Roshan

Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.

With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Bussiness, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.

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