In view of digital fraud during the Corona period, the Reserve Bank of India (RBI) has implemented a new rule regarding auto debit rule from 1 October (October 1) i.e. today. With this, customers will no longer be able to make automatic payment of their account DTH payment, phone recharge, OTT platform without informing them. The Additional Factor of Authentication (AFA) rule has come into force from today. Let us know five big things of this new rule, which will have an effect on you –
1- Intimation of auto debit payment has to be given to the customers first
According to the new rule, the bank will have to give information about the payment of the outstanding payment in advance. In this case, there will no longer be an automatic transaction. Payment can be made to anyone only after the permission of the customer.
2- One-time registration process
Customers will now have to go through a one-time registration process, after which payment can be made without authentication. During registration, the customer will be able to set the validity of his future transactions.
3- From now on OTP required on payment of more than 5,000
According to the new guideline, the bank will have to send OTP on recurring payment above Rs 5,000. Only after that payment can be made.
4- This rule should not apply to these payments
There are some limitations to this new rule. As such it is applicable only on payments like utility. That is, SIP, mutual fund and loan payments will continue to be done through auto debit.
5 – Option to exit
Customers can opt out of processing a particular transaction through the link provided in their pre debit notification.
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