From October 1, the customer will be notified 24 hours prior notice of any recurring or repayment made, especially by credit and debit cards and worth 5,000 5,000 or more. Payment. Advanced Notice for Execution of Recurring Payments to Customers Sent by Banks means to obtain approval to proceed with any such transaction as per the new norms issued by the Reserve Bank of India (RBI). Such transactions will not take place without the consent of the customer. Under the new system, banks will send one-time passwords (OTPs) to customers for any transaction over 5,000. As this system is now in effect from October 1, 2021, banks will now reject repeated transactions on credit or debit cards of a customer who does not comply with this new rule.
In other words, according to the new guidelines of the Central Bank, only transactions with customer re-orders can be successfully executed. New laws have been enacted to protect consumers from Internet fraud, which has seen an increase in the risk of payment-related fraud, especially on third-party platforms. Therefore, the RBI wants to give more control to customers when making repayments using credit or debit cards by introducing some form of e-order. Customers will therefore be able to determine and prescribe the amount for such recurring transactions in advance. They can also cancel any such service provided by banks with the help of applications.
These transactions may be affected by:
Self-interest or self-credit privileges such as paying for insurance premiums, renewing subscriptions with higher or OTT platforms, ordering food using e-commerce websites, utility service providers, and other types of transactions will also be most affected. New guidelines from the RBI. However, as many banks have not yet set up their re-ordering process and this may take some time, the new system is likely to cause some confusion among millions of customers who transact through debits and credit cards and make repeated payments on it. Does. Regular. Recurring payments below 5,000 5,000, however, will not be affected by the new RBI guidelines. Impact on consumers
The need for such a step:
Payments over ₹ 5,000 and all refunds will be made 24 hours prior to notification, as these will only take place after the customer has verified them via OTP mode. To clarify the process a bit, up to now, customers can make recurring transactions using their debit or credit cards, and from October 1, all such recurring card payments will be made through the issuer’s bank.
In other words, customers must re-register all of their payment instruments, whether they are debit or credit. Once this is done, the first recurring transaction must be done through an Additional Factor Authentication (AFA) system, i.e. auto approving such auto-debit requests valued at more than 5,000.