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 mandatory after March 31.
However, banks and payment gateways are seeking additional time to comply with the RBI directive on automatic recurring payment.
On December 4, RBI had directed all banks including RRBs, NBFCs, and payment gateways that the processing of recurring transactions using cards or Prepaid Payment Instruments or Unified Payments Interface under arrangement’s in March 31, 2021.
As part of risk mitigation measure, RBI announced this step to bolster safety and security of card transactions. A senior executive at an e-commerce company said the industry is not prepared to implement the e-mandate framework.
Starting April 1, customer e-mandate transactions will be declined by banks, if further extension is not granted by RBI, the official said, adding, this will cause major disruption to recurring transactions and will erode customer trust in digital payments.