STOCK MARKET BSE NSE

Customers’ consent must in new auto-debit rules

With effect from October 1, all standing instructions on cards will not be honoured.

Published: 02nd October 2021 09:13 AM  |   Last Updated: 02nd October 2021 09:13 AM   |  A+A-

Reserve Bank of India.

Reserve Bank of India.

By Express News Service

NEW DELHI: The Reserve Bank of India has made new auto-debit rules which require banks to inform customers in advance about recurring payments due, mandatory from Friday. With effect from October 1, all standing instructions on cards will not be honoured.

As per the guidelines, customer consent is required through an Additional Factor Authentication (AFA) like One Time Password (OTP), if the customer is setting up a new standing instruction/recurring transaction for auto-debit to their account via their debit or credit cards on a merchant like Netflix or a recurring insurance payment etc., explains Puneet Kapoor, President - Products, Alternate Channels and Customer Experience Delivery, Kotak Mahindra Bank.

“Thereafter, customers will also receive a pre-debit notification at least 24 hours before the actual date of deduction of the amount and will have an option to view/ modify/delete the recurring transaction. Further, for recurring transactions above Rs 5,000, customers will have to authenticate the transaction using an OTP,” Kapoor said, adding Kotak Mahindra Bank is in full compliance with the regulations and has introduced an e-mandate solution for customers. Any payment request beyond the maximum amount will need OTP-based authentication at the time of transaction.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp