Mumbai: Some card holders might see the standing instructions for payment on their credit card failed from next month.
This can subscribe with the online content platform, EDTECH company or instruction stand for online advertising payments.
Some of these traders have not comply with the new RBI requirements of additional factor authentication (OTP) for repetitive payments through cards even though the deadline is less than a week.
According to sources, around 75% of banks have placed technology to meet the RBI directives.
However, there are several banks and traders who are still in wait-and-watch mode.
Bank writes to customers, warns that some transactions can fail: “Effective October 1, 2021, the Bank will not approve fixed instructions (e-mandates on repetitive transactions) provided on the trader’s website / Debit Bank HDFC card, unless it is appropriate With a process that matches the RBI.
“The bank has recommended that customers use Bill-Pay options for utilities or pay on the Biller website using OTP.
According to Razorpay, the process that is approaching one third of all repeat payment transactions, a dozen banks have placed new settings where even for bank repetition payments will warn the daily customers in advance and also give them a link to stop the mandate.
“In the short term, there may be some interference but, in the long run, this step by the RBI can take repetitive payment growth of the graph,” said Razorpay and Co-Founder Shashank Kumar co-founder.
Kumar said the RBI direction discussed two major problems.
Previously, stopping fixed instructions to traders could be very complicated with several requesting a letter to be sent by post that asked to stop the subscription.
Second, the debit card is a gray area and repeat payments are carried out on a large scale on a credit card.
Incidentally, even after October 1, the international mandate will continue because no bank or RBI has jurisdiction over international fit.
“There are 900 million debit cards in India and their inclusion can increase the multifold market,” Kumar said.
According to Kumar, by empowering customers to stop payments at any time, RBI has increased the level of trust.
It can also make online education or more affordable entertainment because the availability of this facility will encourage providers to have a monthly discharge model rather than restore annual fees.
In addition to requiring banks to remind customers, the RBI has dismissed automatic discharge of Rs 5,000 per month.
This means that billers, such as insurance companies, with large installments, need to increase the frequency to allow automatic discharge.
In the case of utilities, many online payers use their bank bill payment platform for standing instructions and will not have an impact.