New Delhi: Effective October 1, automatic recurring payments that you make via your debit, credit cards or mobile wallets/UPI will not be automatic but would require your authentication. This is because new auto debit rules will come into effect from Friday impacting recurring card/UPI-based payments.
Payment services such as electricity bills, gas, water or any other utility bills, mobile recharge, DTH, OTT, automatic subscriptions for newspapers, magazines, insurance premium, Netflix, Amazon, will mandatorily require additional factor of authentication (AFA) from Friday. However, your monthly mutual fund systematic investment plans (SIPs) or EMIs for loans from your savings or current accounts will continue as usual.
Under the new norms, banks will be required to inform customers in advance about recurring payment due and transaction would be carried following a nod from the customer.
How the New rules impact you
w All domestic/international recurring payments above Rs 5,000 will require an additional factor authentication (AFA) each time a customer makes a payment.
w But transactions below Rs 5,000 will require a one-time registration process but subsequent transactions can be performed without the AFA.
w Banks have to notify the customer 24 hours ahead of an upcoming auto-debit transaction. Customer has to provide AFA by approving the auto-debit req-uesting in advance. The transaction won’t be completed if customers do not approve or reply to the notification.
w Alternatively one can pay on Merchant Web/App authenticated via OTP or pay via autopay in Billpay on netbanking for electricity /water/gas/ landline/ mobile/ broadband/insurance billers.