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Wednesday, October 27, 2021

RBI extends deadline for processing recurring online transactions, know what is the reason

The Reserve Bank of India has extended the deadline for processing recurring online transactions.

The Reserve Bank of India has extended the deadline for processing recurring online transactions. RBI issued a framework for processing e-mandates on recurring online transactions in August 2019. It was initially applicable to cards and wallets, but was later extended in January 2020 to cover Unified Payments Interface (UPI) transactions.

RBI said in a statement on Wednesday that the need for Additional Factor of Authentication (AFA) has made digital payments secure in India.

Objective to protect against fake transactions

RBI said that registration in the framework and the use of AFA during the first transaction was made mandatory for the convenience of customers and the safe use of recurring online payments. It further states that the primary objective of the framework was to provide security to customers from fake transactions and to increase the convenience of customers.

The central bank said that based on the request from the Indian Banks Association (IBA) to extend the time till 31 March 2021, which would help the banks to complete the migration, the Reserve Bank in December 2020 gave the framework by 31 March 2021 Was suggested to migrate. Therefore, sufficient time was given to the stakeholders to comply with the framework. However, the RBI found that the framework has not been fully implemented only after the extended deadline.

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RBI said that this non-compliance has been taken seriously and will be dealt with separately. Delay in implementation by some stakeholders has led to potential large scale inconvenience and lapses. To prevent any inconvenience to customers, the Reserve Bank has decided to extend the deadline for stakeholders to migrate to the framework by six months, which is till 30 September 2021. After the extended deadline, strict action will be taken on any further delay in ensuring complete compliance in the framework.

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Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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