Dynamite News RBI extends deadline for processing auto-debit payments by 6 months
The Reserve Bank of India (RBI) on Wednesday extended the timeline for processing recurring online transactions by six months to September 30.
New Delhi: The Reserve Bank of India (RBI) on Wednesday extended the timeline for processing recurring online transactions by six months to September 30.
In August 2019, the RBI had issued a framework for processing of e-mandates on recurring online transactions. Initially applicable to cards and wallets, the framework was extended in January 2020 to cover Unified Payments Interface (UPI) transactions as well.
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The requirement of additional factor of authentication made digital payments in India safe and secure. However, the RBI said the framework has not been fully implemented even after the extended timeline. This non-compliance is noted with serious concern and will be dealt with separately.
The delay in implementation by some stakeholders has given rise to a situation of possible large-scale customer inconvenience and default. "To prevent any inconvenience to the customers, the RBI has decided to extend the timeline for the stakeholders to migrate to the framework by six months, that is till September 30.
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Any further delay in ensuring complete adherence to the framework beyond the extended timeline will attract stringent supervisory action," it said. (ANI)