Debit card, credit card auto-payment: What are the big changes? – News 24-7 Live News 24-7 Live
Debit card, credit card auto-payment: What are the big changes?

Debit card, credit card auto-payment: What are the big changes?

The Reserve Bank of India’s (RBI) new diktat is only for debit or credit card standing instructions given or registered with the third party service providers directly for OTT payments, utility bills, subscriptions without involving the banking platform.

Let’s get the facts straight. Your auto debit payments for home loans, utility bills and other recurring payments registered with banks will not see any disruption from April 1, 2021. The Reserve Bank of India’s (RBI) new diktat is only for debit or credit card standing instructions given or registered with the third party service providers directly for OTT payments, utility bills, subscriptions without involving the banking platform.

Let’s get the facts straight. Your auto debit payments for home loans, utility bills and other recurring payments registered with banks will not see any disruption from April 1, 2021. The Reserve Bank of India’s (RBI) new diktat is only for debit or credit card standing instructions given or registered with the third party service providers directly for OTT payments, utility bills, subscriptions without involving the banking platform.ADVERTISING

So far, these recurring payments up to Rs 5,000 were getting debited without getting any additional factor of authentication (via SMS or email) from banks. These third party payments now require proper registration to protect the interest of card holders. The banking system especially the private sector banks are already ready for integration, but the service providers like OTT players or app-based fintech players are not ready with the technology integration as the e-mandate information has to flow from the service provider to the bank and vice-a-versa. Here is the process for giving e-mandate:

News Source:- Money Control

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