Auto debit payment: New rules of auto debit will be applicable from April 1. Banks have to inform the customers about the payment.
Auto debit payment: Recharge and payment of electricity-water bills (automatic recurring payment) will not be automatic from April 1. The Reserve Bank of India (RBI) has mandated additional measures (AFA) for verification after 31 March. However, banks and payment gateways are demanding additional time to comply with the RBI directive regarding automatic recurring payment.
The Reserve Bank of India (RBI) has instructed all banks, including the Regional Rural Bank (RRB), NBFC (NBFC) and Payment Gateway, on 4 December. Accordingly, if the system is not compliant with the AFA in an automatic recurring payment (domestic or foreign) arrangement using a card or prepaid payment instrument (PPI) or Unified Payments Interface (UPI), that arrangement will take place on March 31, Will not continue from 2021.
Explain, the Central Bank has announced this step as part of measures to reduce the risk. Its purpose is to make the transaction strong and safe through the card. If this additional verification measure is not complied with, the customer concerned services, including electricity to the concerned units, over the top, may be affected after 31 March in payment of other bills.
It is worth noting that recently, the RBI has limit the payment of payment through contactless card and the payment of automatic bills through UPI along with the card from January 1. Increased from Rs 2,000 to Rs 5,000. The objective of this initiative is to make digital transactions easy and secure.
