- Stock Markets on Monday: FII selling, US market corrections remain a pain point for domestic equities; Anil Singhvi gives trigge
- Even as US markets fell, Nasdaq gets into deeper correction; sees 10% drop from November highs and worst week since 2020
- ICICI Bank Q3FY22 net profit rises 19% to Rs 6,536 cr
- Budget 2022 Expectations: USD14 bn warehousing industry ready with its wishlist ahead of budget
- Mutual Fund in 2021: Equity outperforms Fixed Deposit, gold loses sheen while debt schemes least favoured by millennials
RBI AFA Rules: New rules for auto-debit payments from October 1 – All you need to know
The AFA rules will be applicable on auto payments linked to debit cards, credit cards, prepaid cards
The additional factor authentication (AFA) rules of the Reserve Bank of India (RBI) will be now implemented from October 1. After the implementation, utility bills, OTT subscriptions and other service payments will not be automatically debited.
The AFA rules will be applicable on auto payments linked to debit cards, credit cards, prepaid cards. The new rules are also necessary for all auto-debits below Rs 5,000.
Auto debit payment will be done only after the customer’s approval, as per the AFA rules. Banks are required to send a notification 24 hours before the payment due date. Customers will have the opportunity to modify or cancel the payment.
As per the AFA rules, it requires customer approval on the notification. OTP required for payment above Rs 5,000. These guidelines are in view of banking fraud and protection of customers. Banks inform customers about the changes in the rules.
The payments those are likely to be affected are OTT subscription, utility bill payment, News website subscription. However, payments linked to bank accounts will not be affected, home loan, auto loan EMI, SIP of Mutual Funds and insurance premium payments.
The rules were to come into force from 1 April 2021, but it then got extended for 6 months.
The Reserve Bank had extended the period to 6 months for the implementation of Additional Factor Authentication. Due to the inconvenience caused to the customers on a large scale, the period has been extended, RBI mentioned.
It is necessary for all service providers to implement the new system by September 30, the Reserve Bank added.
If not approved, now from October 1, auto debit payment of credit, debit cards may fail. New rules will be applicable for the protection of customers, the Bank said.
See Zee Business Live TV Streaming Below:
All the big banks sent messages related to the facility of auto payment by card to the customers.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.