Debit card, credit card auto-payment rules change from April
- Thread starter Sushubh
- Start date
- Replies 16
- Views 1,842
minuteman
I Eat Internet
- For auto-payments from debit and credit cards or via wallets, an additional authentication by the customer will be required from 1 April. "A cardholder desirous of opting for e-mandate facility on card shall undertake a one-time registration process, with AFA validation by the issuer," RBI said.
- The limit for auto-debit from cards and wallets is set at ₹5,000. For transactions above the cut-off, an additional one-time password (OTP) will be needed.
- The new rule will be applicable for transactions performed using all types of cards – debit, credit, UPI and PPIs, including wallets, the central bank earlier mentioned.
- The regulator earlier asked the banks to introduce additional factor authentication by 31 March, 2021. In a circular issued on 4 December, 2020, RBI said, "Processing of recurring transactions (domestic or cross-border) using cards/PPIs/UPI under arrangements/practices not compliant with the aforesaid instructions shall not be continued beyond 31 March, 2021."
- The issuer has to send a pre-transaction notification to the cardholder, at least 24 hours prior to the actual charge or debit to the card. The user will have an option to choose a mode among available options (SMS, email, etc.) for receiving the pre-transaction notification, the regulator said.
- To proceed the transaction, customer's consent is must. The cardholder will also have an option to "opt-out of that particular transaction".
- The issuer shall provide the cardholder an online facility to withdraw any e-mandate at any point, RBI said. "No charges shall be levied or recovered from the cardholder for availing the e-mandate facility on cards for recurring transactions," the bank noted.
- Banks have started informing its customers about this new rule. “In accordance with regulatory requirements, processing of e-mandates for recurring transactions, which have been registered on your credit or debit card without Additional Factor of Authentication (AFA), will be discontinued w.e.f. April 1, 2021. You may make payments directly through your card at the merchant website or application," read a communication sent by Axis Bank.
WTF man, while these rules are good, it shouldn't be applicable on intl transactions, or at least allow people to increase the limit 5k is too low.
Just because some people get scammed not knowing how things work, does not mean I should suffer because of them.
Just because some people get scammed not knowing how things work, does not mean I should suffer because of them.
i kinda like this law and that cards info cannot be saved that too is damm good
Threatening institutions with consequences is the new normal for getting things done these days. RBI hai ya Mafia?
Regulatory institution has every right to threaten and make the institutions comply with the orders in the interest of larger consumer benefits and safety. That's their job. You cannot call them mafia. Further to make things simple, you cannot call your boss a mafia agent if (s)he has threatened you with consequences provided, you're not complying with the orders within the purview of your work.
