Your auto-debit payment may fail from April 1, as most banks have not implemented RBI regulations.
Auto-debit payment (nominal photograph)
If you have set a recurring auto-debit payment for mobile and utility bills, then your problem may increase. Your auto-debit payment may fail from 1 April. The reason for this is that the Reserve Bank of India (RBI) set March 31 as the deadline for new rules to implement Additional Factor Authentication (AFA) for recurring payments through debit and credit card. is.
Millions of bank customers who have set-up recurring auto-debit payments for services such as mobile and utility bills, OTT (over-the-top) platforms and digital news subscriptions may face difficulties from April 1 as payments. May fail.
The Internet and Mobile Association of India (IAMAI) has warned that lakhs of customers may fail with the e-mandate from April 1, 2021, as most major banks have passed RBI regulations for registration, tracking, modification and withdrawal of e-mandates. No steps required to be followed.
Auto-debit payments facility for small amount transactions
Explain that the central bank had asked banks to provide e-mandate facility to customers for credit and debit cards. This facility was meant for the transaction of small amounts regularly. The facility of e-Mandate applies to all types of payment options. According to the RBI, debit and credit card holders will have to approve e-mandate, that is, for the transaction of payment. This facility is only for recording transactions.
Payments of 2 thousand crores may be affected
Payments of Rs 2000 crore will be affected due to failure of auto-debit payments facility. Payments of more than Rs 2,000 crore for MSMEs and corporates, including sectors such as cards, utility bills, OTT and media subscriptions, are expected to be affected in April.
Deadline is coming to an end on March 31
The RBI has issued two circulars to banks, non-bank prepaid payment instrument issuers and the authorized card payment network for processing e-mandates, the deadline expires on March 31, 2021.
What is the new rule?
The new rule requires banks to send a notification to customers 5 days before the payment is deducted and allows the transaction to be done only after approval by the customer. Banks also need to send one-time passwords to customers for recurring payments of more than Rs 5,000.
IAMAI states that industry consultations suggest that most scheduled commercial banks do not have the advanced capability to implement this facility. Due to this, other partners in the ecosystem such as subscribers and card networks have not been able to perform their obligations under these circulars.
As a result, automatic monthly recurring payments via debit or credit card for many services are likely to fail from April 1, until banks and merchants get the option.
These steps taken by banks
Banks like HDFC Bank, ICICI Bank and State Bank of India (SBI) have told their network partners their inability to implement instructions on recording payments. Vendors have now started informing customers and are suggesting alternative methods of payment.
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