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UPI AutoPay is a UPI-based recurring payment system that lets users set up a one-time mandate for automatic payments. After authorization, payments are processed on scheduled dates without requiring manual approval each time. It is widely used for subscriptions, EMIs, insurance premiums, SIPs, utility bills, and other recurring payments.
What is UPI AutoPay?
UPI AutoPay is a recurring payment feature built on the UPI platform. It lets customers authorize one-time e-mandates through any UPI app. After that, payments are debited automatically on the scheduled date without requiring a PIN for each transaction.
NPCI launched UPI AutoPay on 22nd July 2020 as part of UPI 2.0. Since then, it has become the default recurring payment method for digital-first businesses in India.
UPI AutoPay works for both individuals and businesses.
For individuals: Once set up, monthly bills pay themselves. No missed payments. No late fees.
For businesses: Mandates are generated instantly. Payments collect automatically. No manual follow-up needed.
A business can configure mandates for one-time, daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-yearly, and yearly recurring payments.
Real-Life Example of UPI Autopay
Electricity bills. Mutual fund SIPs. Loan EMIs. These all follow a fixed schedule. Paying them manually every month is friction you do not need.
Take electricity. The bill comes monthly. Miss it once and you get a late fee. Set up UPI AutoPay instead. Open any UPI app. Go to the mandates section. Enter your bank and phone details. Set the maximum limit based on your estimate. Authorize with your UPI PIN. Done.
From that month on, the electricity amount is automatically debited on the due date. You get a notification once payment goes through. No penalties. No reminders you have to respond to.
Or take a mutual fund SIP. The amount is fixed each month. Same date. UPI AutoPay debits it without any action from you. You get a reminder two to three days before. That is just to ensure you have enough balance.
Loan EMI works the same way. If you have an active personal loan, home loan, or BNPL repayment, UPI AutoPay can handle the monthly collection automatically. Your lender sets the mandate once. You approve the mandate once and then EMIs are debited on schedule after that.
How Does UPI AutoPay Work?
There are five steps in the UPI AutoPay flow:
- A merchant registers with a payment service provider like Cashfree Payments that supports UPI AutoPay.
- The merchant offers the customer an option to create an e-mandate via UPI ID, QR Code, or intent flow.
- The customer opens their UPI app, goes to the mandate section, reviews the details, selects a bank or debit card, and enters the UPI PIN to authorize.
- On the scheduled date, the bank account linked with the UPI ID is auto-debited. The amount flows to the merchant account.
- The customer receives a notification confirming the payment. Two to three days before every debit, they receive a pre-debit alert to ensure sufficient balance.
What is the Limit on UPI Autopay Transaction Value?
UPI AutoPay has two transaction limit tiers depending on the mandate type and category.
| Limit Type | Maximum Amount | PIN Required Per Debit | Eligible Categories |
| Standard UPI AutoPay | Up to Rs. 15,000 | No PIN after initial setup | OTT subscriptions, utility bills, mutual fund SIPs, mobile recharges |
| Enhanced e-Mandate | Up to Rs. 1,00,000 | PIN required for setup. No PIN per transaction after. | Insurance premiums, loan EMIs, credit card bill payments |
| Physical Mandate (NACH) | Up to Rs. 1,00,00,000 (1 crore) | Bank authorization at setup | High-value recurring payments, large-scale collections |
What is an On-Demand UPI Autopay?
Now that our concepts on UPI autopay and recurring billing are clear, let’s move on to the next topic.
So, what are On-Demand UPI subscriptions?
Well, it is an extension of the UPI Autopay service. With On Demand subscriptions, businesses can personalize their recurring billing according to the customer’s requirement.
But how is that different from normal UPI Autopay services?
Here’s how-
So, you, as a merchant, can choose to edit the recurring billing specifications like:
- Frequency
- Amount
- Period
Here’s an example for better understanding.
Let’s say you own a gas agency. Now, the gas utility bill shall vary according to the units consumed.
| Price Per Unit | Gas Units Consumed | Time Period For Recurring Billing | Total Amount |
| Rs. 10/unit | 100 | 28 days | Rs 1000 |
| Rs. 10/unit | 150 | 28 days | Rs. 1500 |
Hence, your On-Demand UPI Autopay PSP allows you to charge your user on the basis of their consumption.
Also read: Set up custom recurring payments via any UPI app with On-Demand UPI AutoPay
How does UPI benefit businesses and individuals?
UPI has changed how money moves in India. It has made digital payments fast, accessible, and friction-free. But UPI AutoPay specifically goes further. It removes the need for manual intervention on recurring transactions.
For lenders running loan EMI collections, that means no reminders, no follow-ups, no missed EMI calls. For insurance companies, it means premiums collect on schedule without a renewal campaign. For SaaS companies, monthly billing happens automatically.
That is the core value: predictable collections with zero operational overhead on every recurring transaction.
Benefits of UPI Autopay for Individuals
UPI is one of the best gifts of the digital world that individuals could ask for. UPI Autopay offers unmatched convenience. Autopay allows individuals to instantly make payments directly to bank accounts, either of businesses or individuals. And all of this can be done with just a simple mobile number or UPI ID and without the requirement of any account number, IFSC code, or other bank transfer details.
With UPI autopay, you can make payments anytime, anywhere, including weekends and holidays, making it the ideal choice for individuals when they need to pay bills or send money to their distant relatives in case of emergency or festivals. UPI is a secure payment method wherein, before processing the transaction, the individual is asked to authenticate the payment. Through a two-factor authentication step, an OTP on mobile or email and a UPI PIN should be entered before the payment. This gives the user the security and confidence they wish for when managing finances. Making UPI payments is affordable and low-cost; either you pay manually or set up a UPI autopay.
Benefits of UPI for Businesses
UPI allows businesses to reach individuals across states, which leads to the growth and expansion of their business. And UPI Autopay helps businesses achieve their predictable growth and leads to timely collection in cases where their business type is related to subscriptions, insurance premiums, EMIs and utility-related matters. UPI Autopay in businesses improves cash inflows by reducing manual effort and resources on follow-ups, sending continuous reminders to users, and manual reconciliation. With UPI Autopay, businesses easily move from being a last-minute collector to an automatic, proactive receiver.
UPI Autopay is equally beneficial for both individuals and businesses, creating a win-win ecosystem. It improves efficiency and enhances customer-merchant satisfaction and trust.
What are the advantages of using UPI Autopay?
UPI autopay not only pays your bill automatically but also provides peace of mind that you are financially committed. Let us go through the advantages of using UPI Autopay.
1. Convenience and Time-Saving
UPI Autopay eliminates the need to track due dates manually. Payments are deducted automatically on scheduled dates. No action needed from the customer after the initial setup.
2. Avoid Late Fees
UPI AutoPay ensures timely payments for EMIs, subscriptions, and utility bills. This removes the risk of late fees and service interruptions. Especially useful for OTT renewals and mutual fund SIP deductions.
3. Flexibility and Control
You can set up autopay for services you use every month or every year. Minimum and maximum limits are configurable. You are always in control of what gets debited and when.
4. Easy Management
Mandates can be created, approved, modified, paused, or revoked directly from the UPI app. No need to call customer support or visit a branch.
5. Enhanced Security
UPI AutoPay is built on a two-factor authentication framework. The customer authorizes the mandate once with a UPI PIN. After that, automatic debits happen within the approved parameters. All transactions run through NPCI-regulated systems.
6. Pre-debit Notification
Users receive a notification two to three days before every scheduled debit. This is a reminder to keep enough balance in the account. The payment will not fail because of insufficient funds if the alert is acted on.
Comparing UPI AutoPay and Other Recurring Payment Methods
Recurring payments in India can be enabled through multiple methods: UPI AutoPay, standing instructions on credit cards, e-mandates via net banking, and debit card mandates. Here is how they compare.
Did you know?
The maximum amount for any one transaction with physical mandates is Rs 1,00,00,000 (1 crore or 10 million).
| Parameter | UPI AutoPay | Credit Card SI | Debit Card e-Mandate | Net Banking e-Mandate |
| Setup | Instant via UPI app. No branch visit. | Card details required. | Card and bank details needed. | Net banking credentials and OTP. |
| PIN per transaction | No (after initial setup) | No | No | No |
| User control | Pause, modify, cancel anytime via UPI app. | Contact issuing bank. | Contact bank to modify. | Contact bank to cancel. |
| Max limit | Rs. 15,000 standard. Rs. 1 lakh for eligible categories. | Depends on credit limit. | Rs. 1 lakh for most mandates. | Rs. 1 crore (physical NACH) |
| Failure risk | Low. Directly linked to bank account. | Medium. Card expiry can break mandate. | Medium. Card expiry risk. | Low. Bank delays possible. |
| Pre-debit alert | Yes. 2-3 days before debit. | Depends on issuer. | Depends on bank. | Depends on bank. |
| Best for | OTT, SIPs, EMIs, insurance, SaaS billing | High credit limit purchases | Bank-linked recurring bills | High-value transfers |
List of Banks and UPI Apps Live on UPI AutoPay
As of August 2022, 140 banks are live on UPI AutoPay.
Further, BHIM (Bharat Interface for Money) the mobile payment App developed by NPCI is the first UPI-based app to support the UPI mandate feature.
Introducing UPI AutoPay on Cashfree Subscriptions
We have added UPI AutoPay as an authentication mode on our recurring payments platform Cashfree Subscriptions. Therefore, with this update, Cashfree Subscriptions users can now offer their customers the option to enable recurring payments using the widest range of modes including standing instructions on credit cards, e-mandate-based payments via debit cards, net banking and UPI.
Cashfree Payments offers UPI Autopay services with 20+ UPI apps including PhonePe, Google Pay, Paytm, BHIM and Amazon Pay
Setting up Recurring Payments with Cashfree Subscriptions
With Cashfree, you can set up subscriptions and create a great experience for your customers while minimising engineering investment. Cashfree Subscriptions is fast to configure, preview, test and also to deploy.
Here is how Cashfree Subscriptions works!
Check out the integration guide for step-by-step instructions.
Register to get early access to UPI AutoPay
Creating a UPI mandate using Cashfree Subscriptions UPI AutoPay is a simple process. Check out how Cashfree Subscription is the fastest and easiest way to enable recurring payments. [ UPI AutoPay mandate flow on WhatsApp included]
For our existing Cashfree Subscriptions users UPI AutoPay will be directly enabled on merchant accounts. Registrations for early access to UPI AutoPay are open. If you wish to integrate UPI AutoPay on Subscriptions you can register with us here.
UPI AutoPay for Loan EMI Collection
Loan EMI collection is one of the most common use cases for UPI AutoPay in India. NBFCs, digital lending platforms, and banks use it to automate monthly repayments.
Here is how it works for lenders:
- The borrower authorizes a UPI AutoPay mandate at the time of loan disbursal.
- The EMI amount is fixed. The debit date is fixed. No follow-up calls needed.
- On the due date, the amount is auto-debited from the borrower’s bank account.
- Both lender and borrower receive confirmation notifications.
The enhanced e-mandate limit of Rs. 1,00,000 covers most personal loan and home loan EMI amounts. For higher-value EMIs, physical NACH mandates apply.
Cashfree Subscriptions supports UPI AutoPay for loan EMI collection. Lenders can integrate via API or use the hosted mandate flow to onboard borrowers quickly.
UPI AutoPay for Insurance Premium Collection
Insurance companies and insurtechs in India are increasingly using UPI AutoPay to collect renewal premiums automatically. This reduces policy lapses caused by missed payments.
The typical flow:
- Policyholder sets up a UPI AutoPay mandate at the time of policy issuance.
- The premium amount and due date are pre-set in the mandate.
- On the renewal date, the premium is auto-debited without any action from the policyholder.
- The policyholder gets a pre-debit notification 2-3 days before. And a confirmation after.
This matters. Policy renewal drop-off is a known problem for insurers. Automatic collection removes the biggest friction point: the policyholder forgetting to renew.
The enhanced limit of Rs. 1,00,000 covers most individual insurance premiums. UPI AutoPay is listed by NPCI as an eligible category for this higher limit.
Cashfree Payments supports insurance premium collection via UPI AutoPay through the Cashfree Subscriptions platform.
UPI AutoPay for SaaS Subscription Billing in India
SaaS companies billing Indian customers have a recurring payments problem. Credit card penetration is low. Net banking mandates have friction. UPI AutoPay solves both.
Why SaaS businesses use UPI AutoPay:
- India’s UPI user base is over 350 million. Most SMBs and individual users pay via UPI, not cards.
- The mandate setup takes under 60 seconds via any UPI app. Checkout drop-off is minimal.
- Monthly, quarterly, and annual billing cycles are all supported.
- Mandate modification is possible without cancelling and re-creating. If pricing changes, the limit can be updated.
The standard Rs. 15,000 limit covers most SaaS subscription amounts. For higher-ticket enterprise billing, the enhanced limit applies.
Cashfree Subscriptions supports SaaS billing via UPI AutoPay. Integration is available via API, SDK, and no-code hosted pages.
Conclusion
UPI AutoPay is the cleanest recurring payment experience in India. Customers authorize once. Payments collect on schedule. No follow-ups. No missed transactions.
For businesses, it transforms collections. Whether you are running loan EMI repayments, insurance premiums, OTT subscriptions, or SaaS billing, UPI AutoPay puts collections on autopilot.
Cashfree Subscriptions supports UPI AutoPay alongside standing instructions on credit cards, debit card e-mandates, and net banking mandates. It is the widest recurring payment coverage available on a single platform.
Register to integrate UPI AutoPay with Cashfree Subscriptions today.
FAQs on UPI Autopay
What does autopay mean?
Autopay means an automatic payment that is deducted from your bank account on a scheduled date without you having to do anything manually. You authorize it once. After that, it runs on its own.
Can UPI AutoPay be used for loan EMI collection?
Yes. UPI AutoPay supports loan EMI collection up to Rs. 1,00,000 per transaction under the enhanced e-mandate category. Lenders can set up mandates at disbursement. EMIs collect automatically on the due date every month.
Can insurance companies use UPI AutoPay for premium collection?
Yes. Insurance premium collection is an eligible category under the enhanced UPI AutoPay limit of Rs. 1,00,000. Insurers and insurtechs can automate renewal premium collection and reduce policy lapse rates.
Does UPI AutoPay work for SaaS subscription billing in India?
Yes. SaaS companies can use UPI AutoPay to collect monthly, quarterly, or annual subscription fees from Indian customers. The standard limit of Rs. 15,000 covers most subscription amounts. Setup takes under 60 seconds via any UPI app.
Is there a risk in autopay?
UPI autopay is only risky if your mandate is not set as per the due date or the frequency of deductions is incorrect. It is a low-risk payment method, as the consent and PIN authentication from a user are mandatory steps. A user can track the payment made, pause it or cancel it anytime from anywhere.
Is setting up a UPI autopay a good idea?
Absolutely, UPI Autopay is a good idea because it saves time, prevents missed payments, and ensures timely bill payments without manual effort.
How to set up a UPI autopay?
Enter the PIN to open the app. Once open, go to the auto mandates section and select ‘Approve a mandate request’. Verify the details of the mandate and enter your UPI PIN.
What type of bills should be set on UPI autopay?
Bills that are to be paid, every year, every month or quarterly. Ideal for fixed bills based on internet services, subscriptions, EMIs, insurance premiums, and OTT platform payments.
How can a business benefit from UPI autopay?
UPI autopay is extremely beneficial for businesses, as it improves timely collections, enhances cash flow, decreases operational work, and increases client retention.
