If you have taken an auto debit facility to pay a mobile bill, electricity bill or any other utility bill, you will have trouble starting April 1. Many of your bill payments can get stuck.
In fact, as of March 31, the Reserve Bank of India has set a deadline to implement new guidelines for additional factor accounting (AFA). These guidelines are for recurring payments by debit or credit card. However, most banks have not yet met these guidelines. Because of this, it is possible to get paid. The central bank has instructed banks to provide e-mandate facility to customers for credit and debit cards. As per RBI rules, debit and credit card holders are required to provide e-mandate on behalf of banks for such transactions. As per the RBI directive, the bank is required to notify the customers about the payment five days in advance. At the same time, it is also mandatory to send a one-time password to pay Rs 5000. The RBI has previously said that the rule will come into effect from April 1, 2021, but most banks and sellers have not yet made plans to implement it. In such a situation, the crisis may arise from next month.
Banks did not follow the guidelines
The Internet and Mobile Association of India has warned that millions of consumers approved online may fail after April 1. This is because many banks have not taken steps to enable registration, tracking, modification and withdrawal as per RBI guidelines for online approvals. As a result, automatic monthly recurring payments by debit or credit card from April 1 may fail. It has raised over Rs 2000 crore in April, including all sectors including cards, utility bills, OTT and media subscriptions and MSME and corporate.
From 1 April, 10 key rules will change your salary, learn how the tax on PF affects your pocket