INSUBCONTINENT EXCLUSIVE:
Transactions above Rs 5,000 will require an additional one-time password from April 1Banks are most likely to decrease auto payments from
April 1 as all repeating deals utilizing cards and prepaid payment instruments will now require an extra element of authentication, based on
an RBI circular very first provided in December 2020
Transactions above Rs 5,000 will require an additional one-time password
A notice will be sent out to consumers five days before an automatic payment is arranged and the transaction will go ahead just if approved
If banks decline automatic payments, the users will have to make manual deals to complete their bill payments.People use recurring mandates
on debit/credit cards to spend for costs and subscription services such as OTT streaming, media, utility and postpaid services
Rejection of payment is most likely to trigger a huge disturbance, with estimates suggesting that transactions worth about Rs 2,000 crore
could stop working from April 1
UPI deals will, nevertheless, stay unaffected by the new rule.Third-party payment processors have actually also decreased to share consumer
information with banks due to legal agreements and this has further worsened the problem.The reserve bank has declined to extend the due
date, however the matter is anticipated to be fixed in the coming weeks.In car pay deals, cash is instantly moved on a scheduled date
towards payment of recurring expenses such as charge card and energy expenses.
