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Payments24 June 2026Updated 7 August 2026Arjit Jindal · Co-founder, FindThatSoftware

How to Set Up Recurring Payments for Your Business in India (2026)

Selling subscriptions, SaaS or memberships in India? Here's how recurring payments work via UPI AutoPay and card e-mandates, the RBI 2026 e-mandate rules and limits, and how to set it all up with a payment gateway.

If you sell anything on a subscription - SaaS, a membership, a content plan, EMIs or repeat orders - you do not want to chase customers for payment every cycle. In India, automated recurring payments run on two rails: UPI AutoPay and card e-mandates. Both are tightly regulated by the RBI, and the rules were consolidated in 2026. Here is how to set it up the right way.

The two rails for recurring payments

UPI AutoPay. The customer approves a recurring mandate once in their UPI app, and future payments auto-debit from their bank account. It is the most popular rail for Indian consumers, with high success rates and low cost, and is ideal for monthly subscriptions and SIPs.
Card e-mandates. A standing instruction on a debit or credit card. Useful for higher-value plans and customers who prefer cards, and for some cross-border cases.

For most India-first subscription businesses, lead with UPI AutoPay and offer cards as a fallback.

What the RBI 2026 e-mandate framework means for you

The RBI's consolidated E-mandate Framework took effect on 21 April 2026 and applies to recurring payments across UPI, cards and prepaid instruments. The key rules every merchant should know:

No extra authentication up to Rs.15,000 per transaction. Recurring debits up to this limit go through without an OTP each time, after the one-time mandate setup. For insurance premiums, mutual fund SIPs and credit card bill payments, that no-authentication limit is Rs.1,00,000 per transaction.
One-time mandate setup with AFA. The customer registers the mandate once using Additional Factor Authentication (an OTP or UPI PIN). After that, debits within the limit are seamless.
Mandatory 24-hour pre-debit notification. The customer must be notified at least 24 hours before each charge, with the ability to opt out of that debit or cancel the mandate entirely.
No charges to the customer for using the e-mandate facility, and customers can revoke a mandate anytime from their app.

You do not implement these rules yourself - a compliant payment gateway handles the mandate registration, notifications and limits for you. But you should understand them, because they shape churn (the 24-hour notice gives customers a clear cancel moment) and your pricing (keep per-cycle charges under Rs.15,000 where possible to avoid extra friction).

How to set it up for your business

Choose a payment gateway that supports subscriptions. Razorpay and Cashfree both offer recurring payments / subscriptions products covering UPI AutoPay and card e-mandates - see our guide to the best payment gateway for startups in India.
Create your plans. Define the amount, frequency (monthly, quarterly, annual) and any free trial in the gateway's subscriptions dashboard or API.
Collect the mandate at checkout. The customer authorises the recurring mandate once via UPI AutoPay or card e-mandate (with AFA). UPI AutoPay typically converts best in India.
Let the gateway handle compliance. It sends the 24-hour pre-debit notifications, processes auto-debits within the limits, and manages retries and failures.
Handle failures and dunning. Some debits will fail (insufficient balance, expired card). Use the gateway's retry and reminder tools, and offer a quick UPI fallback.

What you need to start

Recurring payments are a payment-gateway feature, so the decision comes down to which gateway fits you. Compare them in our best payment gateway for startups in India guide, learn the basics of accepting UPI on your website, or browse every option in the Payments category.

RBI rules, limits and gateway features change. Confirm the current e-mandate limits and your gateway's subscription capabilities before launching.

Written by

Arjit Jindal · Co-founder, FindThatSoftware

Arjit co-founded FindThatSoftware, an India-first software-decision platform. He writes about how Indian businesses actually choose, price, and stack the software they run on - with the forex, GST, and support trade-offs global directories leave out.

linkedin.com

FAQ

Frequently asked questions

What is the recurring payment limit without OTP in India?: Under the RBI 2026 e-mandate framework, recurring auto-debits up to Rs.15,000 per transaction go through without additional authentication after the one-time mandate setup. For insurance premiums, mutual fund SIPs and credit card bill payments, the no-authentication limit is Rs.1,00,000 per transaction.
What is the difference between UPI AutoPay and a card e-mandate?: UPI AutoPay is a recurring mandate authorised in the customer's UPI app that auto-debits their bank account - the most popular, low-cost rail in India. A card e-mandate is a standing instruction on a debit or credit card, useful for higher-value plans and card-preferring customers. Most India-first subscription businesses lead with UPI AutoPay.
How do I set up recurring payments for my subscription business in India?: Use a payment gateway that supports subscriptions, such as Razorpay or Cashfree. Create your plans (amount, frequency, trial), collect a one-time mandate from the customer at checkout via UPI AutoPay or card e-mandate, and let the gateway handle the 24-hour pre-debit notifications, auto-debits and retries to stay RBI-compliant.
Do customers get notified before a recurring payment is charged?: Yes. RBI rules require a pre-debit notification at least 24 hours before each recurring charge, and the customer can opt out of that debit or cancel the mandate. A compliant payment gateway sends these notifications automatically, and no charges may be levied on the customer for using the e-mandate facility.

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The two rails for recurring payments

UPI AutoPay. The customer approves a recurring mandate once in their UPI app, and future payments auto-debit from their bank account. It is the most popular rail for Indian consumers, with high success rates and low cost, and is ideal for monthly subscriptions and SIPs.

Card e-mandates. A standing instruction on a debit or credit card. Useful for higher-value plans and customers who prefer cards, and for some cross-border cases.

For most India-first subscription businesses, lead with UPI AutoPay and offer cards as a fallback.

What the RBI 2026 e-mandate framework means for you

The RBI's consolidated E-mandate Framework took effect on 21 April 2026 and applies to recurring payments across UPI, cards and prepaid instruments. The key rules every merchant should know:

No extra authentication up to Rs.15,000 per transaction. Recurring debits up to this limit go through without an OTP each time, after the one-time mandate setup. For insurance premiums, mutual fund SIPs and credit card bill payments, that no-authentication limit is Rs.1,00,000 per transaction.

One-time mandate setup with AFA. The customer registers the mandate once using Additional Factor Authentication (an OTP or UPI PIN). After that, debits within the limit are seamless.

Mandatory 24-hour pre-debit notification. The customer must be notified at least 24 hours before each charge, with the ability to opt out of that debit or cancel the mandate entirely.

No charges to the customer for using the e-mandate facility, and customers can revoke a mandate anytime from their app.

How to set it up for your business

Choose a payment gateway that supports subscriptions. Razorpay and Cashfree both offer recurring payments / subscriptions products covering UPI AutoPay and card e-mandates - see our guide to the best payment gateway for startups in India.

Create your plans. Define the amount, frequency (monthly, quarterly, annual) and any free trial in the gateway's subscriptions dashboard or API.

Collect the mandate at checkout. The customer authorises the recurring mandate once via UPI AutoPay or card e-mandate (with AFA). UPI AutoPay typically converts best in India.

Let the gateway handle compliance. It sends the 24-hour pre-debit notifications, processes auto-debits within the limits, and manages retries and failures.

Handle failures and dunning. Some debits will fail (insufficient balance, expired card). Use the gateway's retry and reminder tools, and offer a quick UPI fallback.

What you need to start

RBI rules, limits and gateway features change. Confirm the current e-mandate limits and your gateway's subscription capabilities before launching.

Frequently asked questions

What is the recurring payment limit without OTP in India?

Under the RBI 2026 e-mandate framework, recurring auto-debits up to Rs.15,000 per transaction go through without additional authentication after the one-time mandate setup. For insurance premiums, mutual fund SIPs and credit card bill payments, the no-authentication limit is Rs.1,00,000 per transaction.

What is the difference between UPI AutoPay and a card e-mandate?

UPI AutoPay is a recurring mandate authorised in the customer's UPI app that auto-debits their bank account - the most popular, low-cost rail in India. A card e-mandate is a standing instruction on a debit or credit card, useful for higher-value plans and card-preferring customers. Most India-first subscription businesses lead with UPI AutoPay.

How do I set up recurring payments for my subscription business in India?

Use a payment gateway that supports subscriptions, such as Razorpay or Cashfree. Create your plans (amount, frequency, trial), collect a one-time mandate from the customer at checkout via UPI AutoPay or card e-mandate, and let the gateway handle the 24-hour pre-debit notifications, auto-debits and retries to stay RBI-compliant.

Do customers get notified before a recurring payment is charged?

Yes. RBI rules require a pre-debit notification at least 24 hours before each recurring charge, and the customer can opt out of that debit or cancel the mandate. A compliant payment gateway sends these notifications automatically, and no charges may be levied on the customer for using the e-mandate facility.