New Delhi: The Reserve Bank of India has laid to relaxation fears concerning auto-debit payments for utility payments and over-the-top (OTT) subscriptions that was prone to fail from April 1.
The deadline on RBI’s new rule on extra issue of authentication that requires banks to ship a one-time password (OTP) to clients to validate transactions above Rs 5,000 has been now postponed to September 30, 2021.
In August 2019, the Reserve Bank of India (RBI) had issued a framework for processing of e-mandates on recurring on-line transactions. Initially relevant to playing cards and wallets, the framework was prolonged in January 2020 to cowl Unified Payments Interface (UPI) transactions as effectively.
The requirement of Additional Factor of Authentication (AFA) has made digital payments in India secure and safe. In the curiosity of buyer comfort and security in use of recurring on-line payments, the framework mandated use of AFA throughout registration and first transaction (with leisure for subsequent transactions as much as a restrict of Rs 2,000, since enhanced to Rs 5,000), in addition to pre-transaction notification, facility to withdraw the mandate, and so forth. The major goal of the framework was to guard clients from fraudulent transactions and improve buyer comfort. Based on a request from Indian Banks’ Association (IBA) for an extension of time until March 31, 2021, to allow the banks to finish the migration, Reserve Bank had suggested the stakeholders in December 2020 emigrate to the framework by March 31, 2021. Thus, ample time was given to the stakeholders to adjust to the framework.
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“It is, however, noted that the framework has not been fully implemented even after the extended timeline. This non-compliance is noted with serious concern and will be dealt with separately. The delay in implementation by some stakeholders has given rise to a situation of possible large-scale customer inconvenience and default. To prevent any inconvenience to the customers, Reserve Bank has decided to extend the timeline for the stakeholders to migrate to the framework by six months, i.e., till September 30, 2021. Any further delay in ensuring complete adherence to the framework beyond the extended timeline will attract stringent supervisory action,” the RBI round stated.
