According to the Reserve Bank of India‘s newest orders, recurring transactions utilising debit cards, credit cards, Unified Payments Interface (UPI), or other prepaid payment instruments (PPIs) will require additional factor authentication (AFA).
The Indian central bank has also announced a slew of new rules for auto payments, which will take effect on October 1st, and several banks have already begun informing their customers.
RBI Guidelines
1. According to the RBI, starting October 1, no standing instructions on credit or debit cards will be accepted unless they are accompanied by an additional level of identification. The AFA will also be required for mandate registration, modification, and deletion, according to the bank.
2. Customers will be given a pre-debit (SMS/email) notification 24 hours before the auto pay debit. They can also use the URL on the pre-debit card to opt-out of the transaction/mandate. They can also change, cancel, or examine any standing instructions, up to the maximum limit established on the card.
3. The pre-debit link will include an AFA link for transactions exceeding the maximum amount set.
4. For recurrent transactions of more exceeding Rs 5,000, AFA would be required each time.
5. There will be no modifications if the user’s bank account has been set up with standing payment instructions. However, effective October 1, if these purchases are made with a customer’s debit or credit card, they will be refused.
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