RBI has made it mandatory to use some new security features for auto-debit facility in one’s bank account with effect from October 1, 2021. Know which rules will change from October 1.
New credit-debit card rule: Many rules related to banking and financial sector will change from October 1. Along with changing the check book of three banks, the rules related to credit, debit cards will also change. The Reserve Bank of India (RBI) has made it mandatory to use some new security features for auto-debit facility in one’s bank account with effect from October 1, 2021.
As per the new rules, those who use the auto-debit facility to pay recurring bills or Equated Monthly Installments (EMIs) from their bank accounts may have to manually do some auto-debit transactions from October 1. While many banks like Axis and HDFC had already alerted their customers about the possibility of failure of upcoming auto-debit transactions, some payment service providers are yet to comply with the new RBI norms.
For HDFC Bank customers,
HDFC Bank wrote on its website that “For the safety of the customers, the Reserve Bank of India (RBI) has introduced new security measures for card payments. Please Note: With effect from October 1, 2021, HDFC Bank will not approve any standing instruction (e-mandate for processing of recurring payments) on its Credit Card/Debit Card given on the Merchant Website/App, unless It should not be as per the compliance process of RBI.”
For Axis Bank customers,
Axis Bank said, “As per RBI’s Recurring Payment Guidelines wef 20-09-21, standing instruction will not be accepted on your Axis Bank card(s) for recurring transactions. You can pay for the uninterrupted service directly to the merchant using your card.”
What is e-mandate?
RBI’s new framework to process ‘e-mandate’, digital payment infrastructure for recurring online transactions by RBI and National Payment Corporation of India (NPCI) was launched in 2018 to be effective from March 2021 . The date was later pushed to October 1, 2021, as several stakeholders sought more time for implementation.
E-mandate is basically a set of standing instructions that allows banks and corporates to collect payments from customers virtually and without human intervention. It enables banks to process auto-debit requests for your EMIs, mutual fund SIPs, digital subscriptions, etc.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
