New Delhi, April 30 -- Many Indians rely on recurring payments to manage everything from systematic investment plan (SIP) installments and insurance premiums to credit card bills. However, until recently, there was a major pain point for transactions above Rs.15,000 done through cards or UPI: the requirement for a one-time password (OTP). A simple network glitch or a missed notification could lead to a failed transaction, resulting in missed payments and stiff penalties.

The RBI's consolidated e-mandate framework, effective April 21, fixed this by increasing the cap on transactions to up to Rs.1 lakh for SIPs, insurance premiums, and automated credit card payments. "Meanwhile, the standard threshold remains at Rs.15,000 for everyday subs...