- The new auto-debit rules have commenced from 1st Oct 2021.
- The rules aim to strengthen the safety and security of card transactions and protect the customers from fraudulent transactions. This will enhance the customer experience.
- As per the new rules, there will not be automatic recurring payment for various services including utility bills, recharge of phone, DTH, and OTT. This is because an additional factor of authentication (AFA) will become mandatory.
- The banks will have to inform customers in advance about recurring payments due and transactions will be conducted after getting the nod from the customer.
- The customers will have to undergo a one-time registration process, and subsequent transactions can be performed without the additional factor authentication. During registration, the customer can provide a validity period for future transactions.
- In case of recurring payments which are above Rs 5000, banks are supposed to send OTP to the customers.
- The customers will also get an option to opt-out from a particular transaction or mandate through a link provided in pre-debit notification.
- Static Part:
- HQ of RBI: Mumbai
- Governor of RBI: Shaktikanta Das
Question:
Q.1 From 1st ___ 2021, RBI commenced the new auto-debit rules in order to strengthen the safety and security of card transactions?
a. December
b. October
c. November
d. January
a. December
b. October
c. November
d. January
