From April 1, Expect Disruptions to These Types of Card Payments: 10 Facts

Payments made automatically from your account for mobile, utility, and other bills as well as subscription charges for over-the-top (OTT) platforms are likely to be disrupted from April 1 because of a new Reserve Bank of India (RBI) rule. The rule, which requires additional authentication for recurring transactions using credit cards, debit cards, UPI, or other prepaid payment instruments (PPIs), could affect millions of customers.

What does the RBI rule say? What will it mean for you? Here are 10 important facts you need to know about the new rule and how it will affect you.

An executive of an e-commerce company said, “E-commerce companies are committed to adhere to all applicable regulations. However, industry is not prepared to implement the e-mandate framework issued by RBI. Most banks and networks need a few more months to upgrade their systems to comply. Starting April 1, customer e-mandate transactions will be declined by banks, if further extension is not granted by RBI. This will cause major disruption to recurring transactions and will erode customer trust in digital payments.”

Gadgets 360 has reached out to banks including HDFC Bank and ICICI Bank as well as platforms such as Google Pay, Paytm, and MobiKwik to understand their take. This story will be updated as and when the companies respond.

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