RBI Extends Deadline for New Guidelines on Auto-Payment of Bills, Subscriptions to Sep 30

2 weeks ago 4

The Reserve Bank of India had precocious announced that automatic outgo of things similar bills and subscriptions volition not beryllium allowed starting April 1, directing each banks including RRBs, NBFCs, and outgo gateways that the processing of recurring transactions (domestic oregon cross-border) utilizing cards oregon Prepaid Payment Instruments (PPIs) oregon Unified Payments Interface (UPI) nether arrangements/practices not compliant with AFA would not beryllium continued beyond March 31, 2021. However, connected the time of the deadline, the RBI has extended the deadline to a further six months, present falling connected September 30, 2021. “The hold successful implementation by immoderate stakeholders has fixed emergence to concern of imaginable large-scale lawsuit inconvenience and default. To forestall immoderate inconvenience to the customers, the Reserve Bank has decided to widen the timeline for further the stakeholders to migrate to the model by six months, i.e, till September 30, 2021,” the RBI said successful a notification.

On December 4, RBI had directed each banks including RRBs, NBFCs, and outgo gateways that the processing of recurring transactions (domestic oregon cross-border) utilizing cards oregon Prepaid Payment Instruments (PPIs) oregon Unified Payments Interface (UPI) nether arrangements/practices not compliant with AFA would not beryllium continued beyond March 31, 2021.

As portion of hazard mitigation measure, RBI announced this measurement to bolster information and information of paper transactions. Non-readiness of immoderate of the players could interaction recurring outgo specified arsenic of inferior bills, recharge of phone, DTH and OTT, among others, station March 31. Recently, RBI enhanced the bounds for contactless paper transactions and e-mandates for recurring transactions done cards (and UPI) from Rs 2,000 to Rs 5,000 from January 1, 2021 with a presumption to further the adoption of integer payments successful a harmless and unafraid manner. Under the caller norms, banks volition beryllium required to pass customers successful beforehand astir recurring outgo owed and transaction would beryllium carried pursuing motion from the customer. So the transaction would not beryllium automatic but would beryllium done aft authentication from the customer.

For recurring payments supra Rs 5,000, banks are required to nonstop one-time password to lawsuit arsenic per the caller guidelines. All the ecosystem players, beryllium it banks and outgo gateways, are blameworthy of not taking RBI directive earnestly from 2019 and not being capable to travel connected a azygous platform, which we should person done astatine slightest a mates of months back, truthful that determination could person been a creaseless modulation to the caller mode of doing recurring transactions,” Payments Council Of India (PCI) Chairman Vishwas Patel said. So, the Reserve Bank of India (RBI) requested to see giving astatine slightest 1 period hold truthful that players conscionable RBI directives, Patel, who is enforcement manager of Infibeam Avenues, said.

“Everybody has understood the seriousness of it due to the fact that it is Rs 2,000 crore a period business, arsenic per PCI estimates. We anticipation that the rhythm is not breached and the extremity consumers and merchants are not inconvenienced,” helium added. A elder enforcement astatine an e-commerce institution said the manufacture is not prepared to instrumentality the e-mandate model issued by RBI.

RBI, successful today’s notification said that the model has not been afloat implemented adjacent aft the existing deadline (today), hence the six months extension. The instauration said that the “non-compliance has been noted with superior concern” and volition beryllium dealt with separately.

(With inputs from PTI)

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