Managing recurring payments like electricity, water, phone bills, or SIPs can often feel tedious if done manually every month. To simplify this, banks and payment platforms offer an auto-debit facility, which ensures bills and investments are paid automatically on time, without requiring repeated effort from the user.

Utility bills

Users can access their bank's online or mobile banking platform to set up an auto-debit feature for utility payments. From there, they need to navigate to the Bill Pay or Auto Pay section and register their service provider as a biller. The process is verified through OTP authentication. Once completed, payments will be automatically debited as per the billing cycle.

Auto-debit through UPI

Customers and investors can also use UPI to set up an auto-debit mandate. They can enter their UPI ID and choose UPI as the payment method when starting a bill payment or SIP. A mandate approval request will then be sent to their UPI app, where it must be authenticated. After approval, the amount will be auto-debited on the scheduled date without any manual intervention.

Managing auto-debit instructions

Through the bank's portal, auto-debit mandates can be monitored, changed, or cancelled at any time. As per RBI guidelines, banks and financial institutions must send a pre-debit notification to customers at least 24 hours before executing a recurring transaction. This notification is generally sent via SMS, e-mail, or app alert.

Important points to keep in mind

  • Ensure that the bank account has a sufficient balance before the auto-debit date.
  • Set up transaction tracking alerts
  • Cancel or update mandates in advance if switching accounts or service providers.