Ramesh received a message on the morning of March 31, 2021, asking him to manually authorize any recurring transactions on his credit/debit cards from April 01, 2021.
Intrigued, he checked further and saw that the RBI wanted to make sure of the integrity of transactions, especially for those in the ‘card-not-present status. This may be applicable for standing instructions, both domestic and cross-border, using cards or pre-paid instruments or UPI.
The maximum permissible limit for a recurring transaction under this arrangement was Rs 2,000 which was later increased to Rs 5,000 effective January 1, 2020.
In case, the payment does not go through in spite of giving standing instruction to your banker to debit your card/account, you will have to visit the merchant website and make the payment on your own.
This framework would mandate the use of Additional Factor of Authentication (AFA), during registration, first transaction, a pre-transaction notification with relaxation up to a limit of Rs. 5000 per transaction. This would enhance security and strengthen the digital embrace. Based on an earlier request from IBA (Indian Banks’ Association), the timeline for migration to the new framework was set for March 31, 2021.
However, the framework has not been fully implemented, and hence, the timeline is extended for a further period of 6 months until September 30, 2021.