Summary:
The Reserve Bank of India (RBI) has mandated additional measures (AFA) for verification of automatic transactions after 31 March; however, banks and platforms providing payment facilities are asking for additional time to comply with the RBI directive regarding the payment of automatic bills.
Users may have to face difficulties in auto or debit payment of mobile or electricity bill or OTT subscription due to the new rules of RBI, from April 1. The new rules will require additional authentication (verification) to make payments using credit cards, debit cards, UPIs or other prepaid payment instruments (PPIs), affecting millions of users who`re using the auto-debit payment option.
Under this new rule, banks will have to inform the customers about payment of bills regularly and it can be paid only after approval from the customer. Therefore, the payment of bills will not be done automatically but will be done only after verification from the customer.
For payment of more than Rs 5,000 under the new guideline, banks will have to send a `one-time password` to the customers under the new guidelines. The central bank announced the move as a part of its risk mitigation measures, aimed at strengthening and securing transactions through cards.
The Reserve Bank of India (RBI) has mandated additional measures (AFA) for verification of automatic transactions after 31 March; however, banks and platforms providing payment facilities are asking for additional time to comply with the RBI directive regarding the payment of automatic bills.
Users may have to face difficulties in auto or debit payment of mobile or electricity bill or OTT subscription due to the new rules of RBI, from April 1. The new rules will require additional authentication (verification) to make payments using credit cards, debit cards, UPIs or other prepaid payment instruments (PPIs), affecting millions of users who`re using the auto-debit payment option.
Under this new rule, banks will have to inform the customers about payment of bills regularly and it can be paid only after approval from the customer. Therefore, the payment of bills will not be done automatically but will be done only after verification from the customer.
For payment of more than Rs 5,000 under the new guideline, banks will have to send a `one-time password` to the customers under the new guidelines. The central bank announced the move as a part of its risk mitigation measures, aimed at strengthening and securing transactions through cards.