RBI postpones changes in auto debit-credit for 6 months

RBI postpones changes in auto debit-credit for 6 months

New Delhi: The Reserve Bank of India (RBI) has deferred for six months the changes in OTT subscription, auto payment of bills or auto debit in the country from 1 April. In view of the inconvenience caused to the people regarding the new structure, the RBI has taken this step.

On Wednesday, the Reserve Bank of India issued a statement saying that the timeline of all parties for auto payment and auto debit to come under the new framework has been extended till September 30, 2021. Along with this, while giving strict warning to the banks, even after this, if anyone does not follow the rules, then it will be a matter of serious concern and action will be taken against it.

The Reserve Bank of India today extended the timeline, stating that the delay in implementing this new security framework in auto payment and debit by some stakeholders (banks) would have caused large-scale inconvenience to customers if implemented. To avoid this inconvenience to the customers, time has been given till September 30, 2021 for all the parties to come under the new framework.

In fact, RBI had asked all banks to implement double protection in the system of auto payment or auto debit every month from April 1 for mobile utility, EMI or other bills, OTT subscription, rental charge etc. . RBI says that there should be an additional security layer for such payments.

In the notification, the RBI had said that there will now be an additional security layer for payment of EMIs or rents automatically deducted from credit cards, debit cards, UPIs. There will be an e-mandate arrangement for the first payment from the card or auto payment that happens every month, that is, customers will be asked for one more permission.

This double certification means that banks and all other payment platforms will send information to their customers 24 hours before the first auto payment is cut. At the same time, customers have to choose the medium of communication, through whom they will give an e-mandate for the subsequent recurring transactions. After this, such payments will not be made without the approval of the customers in the same way.

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