Breaking : No automatic recurring payments

     Written by : SMTV24x7 | Wed, Mar 31, 2021, 11:18 AM

Breaking : No automatic recurring payments

Here is the breaking news that, Come April, there will be no automatic recurring payment for various services, including recharge and utility bill as RBI has made Additional Factor of Authentication (AFA) mandatory after March 31.

However, banks and payment gateways are seeking additional time to comply with the RBI directive on automatic recurring payment.

Coming to details, On December 4, RBI had directed all banks including RRBs, NBFCs, and payment gateways that the processing of recurring transactions (domestic or cross-border) using cards or Prepaid Payment Instruments (PPIs) or Unified Payments Interface (UPI) under arrangements/practices not compliant with AFA would not be continued beyond March 31, 2021.

As part of risk mitigation measure, RBI announced this step to bolster safety and security of card transactions.

Non-readiness of some of the players could impact recurring payment such as of utility bills, recharge of phone, DTH and OTT, among others, post March 31.