New auto debit rules of RBI to set in from Friday; Here's what you need to know
New Delhi, Sep 30: With the Reserve Bank of India's (RBI) extended deadline coming to an end, there will be no automatic recurring payment for various services including recharge and utility bill as the additional factor of authentication (AFA) will become mandatory from Friday.
On December 4, RBI had directed all banks including RRBs, NBFCs, and payment gateways that the processing of recurring transactions (domestic or cross-border) using cards or Prepaid Payment Instruments (PPIs) or Unified Payments Interface (UPI) under arrangements/practices not compliant with AFA would not be continued beyond March 31, 2021.
As part of risk mitigation measures, RBI announced this step to bolster safety and security of card transactions.
However, non-readiness of some of the players forced the RBI to extend the deadline on recurring payment such as utility bills, recharge of phone, DTH and OTT, among others, till September 30.
Under the new norms, banks will be required to inform customers in advance about recurring payment due and transaction would be carried following nod from the customer. So the transaction would not be automatic but would be done after authentication from the customer.
For recurring payments above Rs 5,000, banks are required to send a one-time password to customers as per the new guidelines.
Most of the banks including State Bank of India (SBI) have informed their customers about the new rules.
HDFC Bank in a bulk message to customers said as per RBI guidelines on e-Mandate on cards, the bank will decline non-compliant recurring transaction at merchant web or app on your Credit/Debit Card from October 1, 2021.
"Alternate Solution - Retry regular payment on Merchant Web/App authenticated via OTP or Pay via AutoPay in BillPay on our NetBanking for your Electricity /Water/Gas/ Landline/Postpaid mobile/Broadband/Insurance billers," it said.
In August 2019, the Reserve Bank of India (RBI) had issued a framework for processing of e-mandates on recurring online transactions.
Initially applicable to cards and wallets, the framework was extended in January 2020 to cover Unified Payments Interface (UPI) transactions as well.
RBI had said the requirement of AFA has made digital payments in India safe and secure and the primary objective of the framework was to protect customers from fraudulent transactions and enhance customer convenience.
In the interest of customer convenience and safety in use of recurring online payments, the framework mandated use of AFA during registration and first transaction (with relaxation for subsequent transactions up to a limit of Rs 2,000, since enhanced to Rs 5,000), as well as pre-transaction notification, facility to withdraw the mandate, etc.
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Cong will win by-polls in Karnataka, form govt with allies in Maharashtra: DK Shivakumar
Bengaluru, Nov 22: Karnataka Deputy Chief Minister D K Shivakumar on Friday expressed confidence about Congress winning all the three assembly constituencies in the state where by-polls are held. He also voiced confidence about congress along with its alliance partners coming to power in Maharashtra, without engaging in 'resort politics'.
Results for by-polls to the state's Sandur, Shiggaon and Channapatna Assembly constituencies that were held on November 13, and Maharashtra Assembly polls on November 20, will be declared on Saturday.
"The exit polls will fail, we will win all the three seats. In Channapatna, I said I'm the candidate irrespective of whoever contests from the party, I'm the candidate and I'm the face. If we lose, it is my loss..." Shivakumar, who is also the state Congress chief, said in response to a question.
Speaking to reporters here, he said, he has campaigned in more than 8-10 consistencies in Maharashtra for Assembly polls there, and is confident of the party winning the polls.
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"....without any 'resort politics', we will be able to form the government there (Maharashtra), this is my hope and confidence," he said in response to a question on 'resort politics'.
Asked, in case of hung assembly in Maharashtra and Jharkhand, is there a possibility of Congress MLAs being shifted to Karnataka under his supervision, Shivakumar said, "some national media are reporting this, as far as I'm concerned no leader of AICC has approached or spoken to me. I'm not involved in this. If they call me it is a different issue, but we don't have any such plans."
Shivakumar urged the centre to immediately take action and arrest billionaire Gautam Adani, following the US filing civil and criminal charges against him and seven others over a multi-million-dollar bribery scheme.
"I would like to request the Prime Minister, the image of the government is important, the image of the country is important, and his (Modi) image is also important....we appeal to the PM to book a criminal case against him (Adani) and arrest him...shareholders interest should also be protected," he added.
Responding to a question on whether the state government will initiate any action against Adani group in the state where it has businesses, the Deputy CM said, "The central government should start criminal proceedings, after that if they write to us we will do whatever has to be....there should be a plan of action from the central government, since it is international crime."
Asked if the state government will not have any contract with the company ahead, Shivakumar said, "I won't say that. I can't tell that. If there are clean projects without any corruption.....I won't discuss it now, let's see..."
Replying to a question whether any disciplinary action will be taken against Minister B Z Zameer Ahmed Khan for referring to Union Minister and JD(S) leader H D Kumaraswamy as "Kaalia" (dark-skinned), which the NDA had slammed as a "racist" slur, the DCM said, the matter will be discussed internally in the party.
"I have spoken to him (Khan) personally, he is an important worker and leader. Emotionally he has spoken, I have told him it is not right. CM has also spoken to him. Internally we will discuss, I don't want to discuss in the media. We also make mistakes. We have to set right the people, we will see," he said.
Several Congress party office-bearers have been pushing the party to crack the whip against Khan, a lawmaker from Chamarajpet, accusing him of causing damage and embarrassment to the party. They also feel that his remarks had an adverse impact on the party's prospects in the Channapatna Assembly segment.
