It's been moved to General > Restrictions > Password Settings (near the bottom), but only on my iPhone 6. For some unknown reason, it's still in the same place as in your screen shot on my iPad, even though I've got iOS 9.2 on both devices. Strange.
My problem is that it isn't working on my iPhone 6. Even though I've got Require After 15 minutes checked, and Require Password for Free Downloads turned off, I still have to enter my password every time I try to download a free app or update one I've already downloaded. I've got the same setting on my iPad and on my old iPhone 4 running iOS 7.1.2 (the latest available for that model), and it's working on both of them. But it hasn't worked yet on my iPhone 6, and I don't think it was working on the iPhone 5 I upgraded from either.
Any suggestions?
By the way, it sure would be nice if I could use Touch ID instead of always having to enter my password.
NEVER MIND!!!! That option is available for Touch ID! Has it always been there? Anyway, I turned it on and now Require Password for Free Downloads is working, I don't even have to use Touch ID to get them to download the upgrades automatically. Woo Hoo!!! 😍
Rick