RBI is bringing new rules regarding payment.
RBI has mandated additional measures for verification after March 31. If this additional verification measure is not complied with, the payment of other customer centric services including electricity, OTT and other bills to the concerned units will be affected after March 31. may fall.
New Delhi. From April 1, now recharge and payment of public facilities bills (automatic recurring payment) will not be done automatically. The Reserve Bank of India (RBI) has made Additional Measures for Verification (AFA) mandatory after March 31. However, banks and payment facilitators are seeking additional time to comply with the RBI directive on automatic bill payments. The RBI on December 4 directed all banks, including regional rural banks (RRBs), NBFCs (non-banking financial companies) and payment facilitation platforms, to use cards or prepaid payment products (PPIs) or Unified Payments Interface (UPI). If AFA is not being complied with in the system of automatic bill payment (domestic or foreign) using the same, then that system will not continue from March 31, 2021.
Services may be affected: The central bank announced the move as part of risk mitigation measures aimed at making transactions through cards more robust and secure. If this additional verification measure is not complied with, the payment of bills including electricity, other customer centric services, OTT (over the top) to the concerned units may be affected after March 31.
Recently, the RBI increased the limit for payment through contactless cards and automatic bill payments through cards and UPI from Rs 2,000 to Rs 5,000 with effect from January 1. The objective of this initiative is to make digital transactions easy and secure.
Under this new rule, banks will have to regularly inform the customer about the payment of bills and the same can be paid only after approval from the customer. Therefore, due to this, the payment of bills will not be done automatically, but will be done only after verification ie approval from the customer. Under the new guidelines, banks will have to send a ‘one-time password’ to customers for payment of more than Rs 5,000. Under the new guidelines, a senior official of the e-commerce company said that the industry is still ready to implement the RBI directive. is not. He said that if the RBI does not give time to comply with the rule, then from April 1, the bank will not be able to comply with the e-approval given by the customer regarding the transaction. This will disrupt the payment of bills and other transactions on a regular basis. This will break the trust of customers about digital payments.
(Disclaimer: This news has been published directly from Syndicate feed. It has not been edited by News18Hindi team.)