Now you can stop automatic payments for subscriptions to foreign apps like Netflix and YouTube at any time. The Reserve Bank of India (RBI) has changed the rules for automatic payments made to foreign companies. Now if you set up an e-mandate, i.e., a system where money is deducted every month, from your card or UPI for any foreign service, you will receive a notification 24 hours before the payment. For this, banks will have to verify through Additional Factor Authentication (AFA), i.e., OTP. The purpose of this is to protect users from digital fraud and give them more control over their transactions. Transaction Limit: Payments up to ₹15,000 without extra authentication RBI has also set limits for e-mandate transactions. Customers will be able to decide whether a fixed amount should be deducted each time or they can set a maximum limit. If you choose different limits, the bank will have to ask the user for the maximum value. Additionally, for any kind of changes in the e-mandate or to withdraw it, the bank will be required to get re-verification from the user. Full refund on reporting wrong transaction within 3 days RBI’s rules determining customer liability in case of wrong transactions will also apply to e-mandates. No extra charges, e-mandate facility will be free RBI has clarified that banks cannot charge customers any fee for providing e-mandate facility for recurring transactions. Additionally, if your card is reissued after expiry, the old e-mandates can be mapped to the new card.
The post appeared first on .
