Your Netflix, DTH and other services will stop working from THIS month if you don’t comply with RBI’s new rules
If you use auto-payments methods to pay bills and recharge, you will need an additional factor authentication (AFA) for recurring transactions done using debit cards, credit cards, Unified Payments Interface (UPI), or other prepaid payment instruments (PPIs), as per the latest orders by the Reserve Bank of India.
The central bank of India has also introduced multiple rules for auto payments that will come in effect from October 1 and many banks have already started notifying their customers about the same.
What do the RBI guidelines say? Take a look:
– According to RBI, from October 1, no standing instructions set up on credit and debit cards will be processed without the additional factor of authentication. The bank said that the AFA will also be needed for mandate registration, modification, and deletion.
– 24 hours before the auto pay debit, customers will receive a pre-debit (SMS/e-mail) notification. They can also opt-out of the transaction/mandate with the link given in the pre-debit card. They can also modify/cancel/view any standing instructions, for which the maximum limit they can decide, set on card
– For transactions greater than the maximum amount set, the pre-debit link will have a link for AFA.
– AFA will be required each time for recurring transactions of amounts more than Rs 5,000.
– If the standing instructions for payments are registered on the user’s bank account, there will not be any changes. But, if these transactions are on the customer’s debit or credit card, they will get declined from October 1.