New Delhi: The auto-debit facility is likely to be affected due to certain regulations coming into effect from tomorrow. The curbs, however, will not affect non-auto debit payments.
Auto debit payments, pre-instructed to foot monthly phone, and DTH bills, OTT platform subscriptions, etc. could henceforth be made only with the consent of the debit/credit cardholder.
However, several banks are yet to make the necessary technical upgrades as instructed by the RBI, which might affect the auto payment. In such a scenario, the customer will have to visit the website concerned to complete the payment process. Banks, including SBI, have issued a statement in this regard.
Additionally, firms that are to receive the payments too need to upgrade their technology to facilitate auto-debit, which will also affect the payment. Banks, meanwhile, have clarified that they will not be responsible for any delay in payment that may arise out of the issue.
What is auto-debit?
Auto-debit, or standing instruction, is a directive the card-holder issues to the bank for making monthly or annual payments. This helps the cardholder not to keep a tab on the dates on which s/he has to make the payment. With the new regulations, the customer will have total control over the transaction.
Restrictions
–Those who require auto-debit will require a separate registration. If the same amount has to be debited monthly (like in the case of OTT), a fixed e-mandate should be provided. If if the amount differs (like power bills) a variable e-mandate should be issued to the bank. The cardholder opting for a variable e-mandate can also decide the maximum amount that could be withdrawn at a single time.
–For transactions below Rs 5,000, the customer will receive a pre-transaction notification 24 hours in advance. The cardholder can either accept or reject the transaction.
–For transactions above Rs 5,000, an OTP should provide for an additional factor of authentication (AFA). If the transaction is below Rs 5,000 and above the pre-set limit, the AFA will be required.
The payment will be affected if the bank doesn’t port to the new technology or the cardholder doesn’t make the e-mandate registration, or if s/he doesn’t accept the pre-transaction request. The customer should check emails and text messages of the email ID and phone number linked to the bank account. In case of failing to make the payment, s/he should visit the website or App of the service provider concerned to settle the bills
The restrictions are only for auto-debit facilities linked to debit/credit cards. Auto-debit facilities linked to the bank account will not be affected. For instance, insurance clearance via the Electronic National Automated Clearing House (E-NACH) linked to the bank account will not be affected.
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