The Hidden Cost of Convenience
From streaming services and fitness apps to online news and productivity tools, digital subscriptions have become a part of modern life. Setting up automatic payments via UPI or cards is incredibly convenient, but it has a downside: it’s easy to forget
what you’ve signed up for. A small monthly charge of a few hundred rupees might seem insignificant, but several of these can add up to a substantial amount over the year. This slow financial leak, often for services you no longer use, is a common problem for millions of users who may not even realise how much money is leaving their accounts automatically each month.
Your Rights Under the E-Mandate Framework
To tackle this issue, the Reserve Bank of India (RBI) has established a clear set of rules called the Digital Payments E-mandate Framework. This framework is designed to protect consumers and make recurring payments more transparent and secure. A key rule is the mandatory pre-debit notification. For any recurring payment, your bank or payment provider must send you an alert at least 24 hours before the money is deducted. This message will detail the merchant's name, the amount, and the date of the debit, giving you a chance to review the charge. Crucially, this notification must also include a simple way for you to opt-out or cancel the transaction before it happens.
Putting You in the Driver's Seat
The framework also gives you complete control over setting up and managing these auto-debits. No company can start a recurring payment without your explicit approval, which requires an Additional Factor of Authentication (AFA), like an OTP, for the first transaction. For most subsequent recurring transactions up to ₹15,000, no extra OTP is needed, making payments smoother. However, you have the right to modify or cancel an e-mandate at any time through your bank or payment app. This means you are never locked into a subscription and can stop future payments with just a few clicks.
A Step-by-Step Guide to Your Subscription Cleanup
Ready to take control? It’s simpler than you think. Start by opening your primary UPI app (like Google Pay, PhonePe, or Paytm) and finding the section for 'AutoPay', 'Mandates', or 'Recurring Payments'. Here you will find a list of all active automatic payment instructions you have approved. Go through this list carefully. For every subscription, ask yourself: 'Do I still use this service? Is it providing value?' If the answer is no, select the mandate and choose the option to 'Cancel' or 'Revoke'. You may need to enter your UPI PIN to confirm the cancellation. You can also perform this cleanup through your bank's net banking portal in the 'e-mandates' section.
Make It a Financial Habit
A one-time cleanup is great, but the real benefit comes from turning this into a regular financial habit. Set a reminder to review your active mandates every three to six months. The 24-hour pre-debit notifications are your first line of defense against unwanted charges, so make sure you read them. By staying aware of your recurring payments, you not only prevent financial leaks but also become more intentional about the services you pay for. This small discipline can lead to significant savings over time, freeing up funds that can be used for your financial goals instead of forgotten subscriptions.
