Reserve Bank of India (RBI) has announced the new card payments regulations effective from April 1, 2021. The new card payment rules that you must know about it.
RBI has issued a new set of rules for automatic payments from a user’s account for mobile, utility, e-commerce, OTT platforms, and others bills. These automatic payments are likely to be disrupted from April 1st, 2021.
New rules mandates will come into effect from April to April, there will be additional notifications will send when payment companies will ask users permission for every payment under INR 2,000.
If your subscription more than INR 5,000, Company will need OTP to register a mobile number for verification of payment. Under this new rules regulation, No company would reduce charges without the user’s permission even after saving your card.
Back in August 2019, RBI has notified that all scheduled commercial banks, the National Payments Corporation of India (NPCI), prepaid instrument issuers, and card payments.
The new rules will be applicable to mobile payments, wallets, and platforms enabling UPI-based payments. The new rules are likely to affect enterprises that often use auto-payment for their recurring charges.