The RBI has mandated additional measures for verification after 31 March. If this additional verification measure is not complied with, then the related units will get effected after 31 March in payment of other customer centric services including electricity, OTT and other bills May be required.
New Delhi. From April 1, automatic recharge payment will not be able to be done automatically. The Reserve Bank of India (RBI) has mandated additional measures (AFA) for verification after 31 March. However, banks and platforms providing payment facilities are asking for additional time to comply with the RBI directive regarding the payment of automatic bills. On December 4, the RBI directed all banks, including Regional Rural Banks (RRBs), NBFCs (non-banking financial companies) and payment facilitators, to issue cards or prepaid payment products (PPIs) or Unified Payments Interface (UPI). If the AFA is not complied with in the system of automatic bill payment (domestic or foreign), then that arrangement will not continue from March 31, 2021.
The impact could be on services: The central bank announced the move as part of risk mitigation measures, which aims to make the transactions strong and secure through the card. If this additional verification measure is not complied with, the payment of other customer-centric services, including electricity to OTT (over the top) to the concerned units, may be affected after 31 March.
Recently, the RBI increased the limit for payment through contactless card and automatic payment through card and UPI from Rs 2,000 to Rs 5,000 from January 1. The objective of this initiative is to make digital transactions easy and secure.
Under this new rule, banks will have to inform the lien about payment of bills on a regular basis and it can be paid only after approval from the customer. Therefore, the payment of bills will not be done automatically, but will be possible only after verification from the customer. Under the new guideline, banks will have to send ‘one-time password’ to customers under the new guideline for payment of more than Rs 5,000.
A senior official of the e-commerce company said that the industry is not yet ready to implement the RBI directive. He said that if the RBI did not give time for compliance with the rules, then from April 1, banks will not be able to comply with the e-approval given by the customer regarding the transaction. This will regularly interrupt the payment of bills and other transactions. This will break the trust of customers about digital payments.
Note-:This news is published directly from Syndicate Feed.
