What Are UPI Recurring Payments?
UPI recurring payments, also known as UPI Autopay, let users automate regular payments like OTT subscriptions, EMI repayments, utility bills, and insurance renewals directly from their bank accounts. Instead of remembering due dates, users can set a one-time mandate for automatic debits.
Introduced by NPCI, the system uses e-mandates created on apps like PhonePe, Google Pay, and BHIM. Once approved, the app auto-debits the amount on schedule — daily, weekly, monthly, or yearly — as permitted under Upi Autopay Rbi Guidelines.
Initially limited to small-ticket services, the feature is now becoming India’s mainstream payment automation tool. By mid-2025, over 250 million active mandates were registered nationwide — a 90% jump in one year, according to NPCI data.
Insight: Every time your OTT or utility bill gets paid automatically, a UPI Autopay mandate is silently doing the work.What’s New in RBI’s 2025 Update
RBI’s latest circular, under Upi Mandate Expansion, has raised the transaction limits and widened the categories eligible for recurring payments. The new rules make UPI Autopay more useful for mid-value services and recurring business payments.
Here’s what’s changing in 2025:
- Higher limit: The maximum per-transaction limit is now ₹25,000 (up from ₹15,000) for categories like insurance, healthcare, and education.
- Instant e-mandate approval: Mandates up to ₹1,000 no longer need UPI PIN re-authentication after the first setup.
- Expanded categories: Covers credit card bill payments, small business SaaS tools, digital advertising, and rent collections.
- Smart reminders: UPI apps must alert users 24 hours before each auto-debit and offer one-tap pause/resume options.
The changes align with RBI’s push for “hands-free finance” — where users manage money with minimal friction. It also ensures transparency and consent at every stage through standardized notifications.
Tip: You can now automate your tuition fees or SIPs directly through your UPI app — no standing instructions needed.How Businesses and Users Benefit
Recurring payments are no longer just for Netflix or insurance. In 2025, small businesses, freelancers, and startups are adopting them for billing and subscriptions. The automation ensures steady cash flow and timely renewals without manual collection efforts.
According to Subscription Payments India, industries like edtech, fitness, telecom, and healthcare are the biggest gainers from the new UPI mandate system. Merchants can create recurring payment links, collect dues automatically, and track payment status in real time.
Key benefits for businesses and users include:
- Timely payments: No delays or failed collections due to forgotten due dates.
- Reduced churn: Subscriptions stay active without manual renewals.
- Lower transaction costs: UPI Autopay is cheaper than card or wallet-based subscriptions.
- Improved transparency: Apps must display live status of active mandates and payment logs.
UPI recurring also enables micro-merchants — like coaching centers, gyms, or small service providers — to digitize their billing without needing expensive software. It’s becoming India’s simplest business automation tool.
Insight: Small merchants can now run subscriptions like big brands — all through a UPI QR code.The Future of Automatic Payments in India
The next wave of automation lies in intelligence — combining UPI mandates with AI and credit lines. Under Upi Future Usecases, banks are exploring smart mandates that adjust automatically to spending patterns, and fintechs are building dashboards for managing all recurring bills in one place.
Expected trends in the coming year:
- AI-powered Autopay: Predictive alerts for low balances and upcoming debits.
- Business credit linkages: Recurring payments tied to BNPL or credit on UPI lines.
- Cross-border autopay: Pilots for NRI-linked recurring transactions through NPCI’s international network.
- Voice and wearable payments: UPI mandates triggered via smart assistants and watches.
With RBI’s new rules and fintech innovation, UPI recurring payments are moving from niche to mainstream. The system that once paid for your OTT subscription might soon handle your rent, school fees, and even SIP investments automatically.
Tip: In 2025, UPI is not just real-time — it’s real-smart. Automation is the next big leap in digital payments.As India’s financial ecosystem matures, recurring payments will define convenience banking. From personal budgeting to small business invoicing, UPI is turning “set it and forget it” into a way of life for millions.
Frequently Asked Questions
1. What are UPI recurring payments?
They are automated payments where a set amount is deducted periodically through UPI after a one-time user consent.
2. What is the new UPI recurring payment limit?
The limit has increased to ₹25,000 per transaction for select categories like insurance, healthcare, and education.
3. How can I enable UPI Autopay?
Go to your UPI app, select the “Autopay” option, choose the merchant or biller, and approve the e-mandate with your UPI PIN.
4. Can I cancel or pause a recurring UPI payment?
Yes. Users can pause, resume, or cancel mandates anytime through their UPI app before the next scheduled debit.
5. Are UPI recurring payments safe?
Yes. They follow RBI and NPCI’s consent-based security framework, with full visibility and instant alerts for every transaction.