The Reserve Bank of India (RBI) has directed the National Payments Corporation of India (NPCI) to conduct a detailed investigation into the rising number of customer complaints related to unauthorised and erroneous UPI AutoPay debit transactions, according to a regulatory report.

Key Highlights

• RBI directs NPCI to investigate rising UPI AutoPay debit failures, refund delays, and customer grievances nationwide.
• Probe aims to improve transaction reliability, strengthen safeguards, and enhance consumer protection in digital payments ecosystem.

The move comes amid growing concerns over recurring debit failures, ghost debits, and delayed reversals linked to UPI AutoPay mandates. Customers across multiple banks and payment apps have reported unexpected deductions, subscription-related debit errors, and challenges in securing timely refunds. These complaints have triggered regulatory scrutiny, prompting the central bank to seek a comprehensive probe.

NPCI has been asked to examine the root causes of these issues, including technical glitches, settlement failures, mandate mismanagement, and gaps in dispute resolution mechanisms. The RBI is also keen to assess whether existing safeguards and grievance redressal frameworks are adequate to protect consumers as UPI AutoPay usage continues to expand rapidly.

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UPI AutoPay, widely used for recurring payments such as OTT subscriptions, utility bills, insurance premiums, and loan EMIs, has seen exponential adoption in recent years. However, the surge in transaction volumes has also led to operational challenges, making reliability and security critical priorities.

Following the RBI’s directive, NPCI is expected to coordinate closely with banks, payment service providers, and app operators to strengthen monitoring systems, enhance transaction accuracy, and streamline refund timelines. The regulator aims to ensure that digital payment platforms remain secure, transparent, and consumer-friendly, reinforcing trust in India’s rapidly evolving digital payments ecosystem.