Apple app store removes option to pay via debit and credit cards due to RBI auto-debit mandate

The company put up a statement on its support page in mid April addressing recurring transactions.

“Regulatory requirements in India apply to the processing of recurring transactions. If you hold an Indian debit or credit card and you have a subscription, these changes impact your transactions. Some transactions might be declined by banks and card issuers,” the Apple statement reads.

With no credit or debit card available, users only have the option to top up their Apple ID balance using net banking or UPI to pay for apps and services like iCloud, AppleTV+ and the likes.

The regulatory requirements allude to RBI’s new auto-debit rules that went into effect last year, which limits companies from deducting money automatically from credit and debit cards for monthly payments.

The new mandate would have required Apple to work with local banks to notify users 24 hours before auto-debiting payment. Recurring payments above Rs 5,000 would have required an OTP before debit. With the new update, it seems Apple is not implementing these, and hence, has removed the option to pay via debit and credit cards altogether, say experts.

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The new rules have disrupted payment models for a number of businesses in India, especially international merchants, SaaS startups and small enterprises who have not been able to forge tie-ups with local issuers.