fbpx
  • About us
  • Advertise
  • Contact
  • Nominate
  • Client’s Voice
  • Login
  • Register
📖 Magazine
The Global Economics
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
The Global Economics
No Result
View All Result
Home Banking Central

“No more Auto-debit”, RBI guidelines to kick in from 1st Oct

SIPs, mutual funds, and loan payments will be unaffected by RBI’s Additional Factor Authentication norms

Sakshi K S by Sakshi K S
October 1, 2021
in Central, Digital, The Global Economics, Top Stories
Reading Time: 3 mins read
0
“No more Auto-debit”, RBI guideline to kick in from 1st Oct

“No more Auto-debit”, RBI guideline to kick in from 1st Oct

830
SHARES
4.6k
VIEWS
FacebookTwitterRedditWhatsAppLinkedInShare Link

RBI‘s new Additional Factor Authentication (AFA) regulations for auto-generated transactions will see proper functioning from October 1, 2021. Banks are obliged to notify their customers and take their consent before every auto-debit transaction. This norm applies to the population using credit and debit cards, unified payments interface (UPI), and digital wallets for monetary transactions.

RBI’s new Additional Factor Authentication (AFA) norms

People who have authorized their repeated payments through internet banking for paying phone recharge, OTT, and utility bills will be unaffected.

Systematic Investment Plan (SIP) transactions will also remain unaffected by the Additional Factor Authentication (AFA) guidelines. This is owing to the medium of SIP transactions via the National Automated Clearing House (NACH) decree, which is directly controlled by the RBI. Hence, investors who continue to facilitate SIP payments in broking firms like Upstox, Motilal Oswal, Angel Broking, Zerodha, and Groww, can remain at ease with regards to their SIP payments.

A spokesperson at Zerodha said to the Business Insider that the firm uses an e-mandate capability on the NPCI NACH portal to make auto-debits accessible to their consumers. As the auto-generated transactions are authorized by the consumer using their bank account, the new RBI norms do not affect their channel. All prevalent and newly made auto-generated transactions will be facilitated similarly as before, he said.

An e-mandate is an existing feature started by the RBI and the National Payments Corporation of India (NCPI). It allows traders to accumulate repeated payments of up to INR 5,000. For payments beyond the INR 5,000 mark, banks will need an extra network for authentication as they are not entitled to e-mandate centric recurring transactions. This is also due to SEBI’s rule of not allowing stock brokerage companies to accept credit or debit cards from consumers to make transactions via the investment portal.

Fundamentally, the new Additional Factor Authentication (AFA) norms need consumers to choose an e-mandate facility via a single registration procedure, which can only be validated via a one-time password (OT), apart from entering their bank account/card/UPI particulars. Consumers will also be given the choice to modify, pause or cancel their repeating transactions.

People that have been making transactions to any OTT platform like Netflix will have to set up an e-mandate.

Under RBI’s new Additional Factor Authentication regulations, bank authorities will have to compulsorily update their consumers in advance about repeated payments that are due. 

Single registration procedure

According to the new Additional Factor Authentication RBI guidelines, consumers will have to register themselves in a single procedure. This procedure will be necessary only once. Post-registration, transactions can be accomplished without authentication. Whilst registering, consumers will deliver the validity period for forthcoming transactions.

Recurring payments above INR 5,000

For repeated transactions above the INR 5,000 mark, banks will provide an OTP to consumers, according to the new Additional Factor Authentication RBI guidelines.

The choice of opting out

According to the new Additional Factor Authentication RBI norms, users will have the choice to opt-out of a transaction or mandate through the web link provided in the pre-debit statement.

What kind of transactions will remain unaffected?

Mutual funds, monthly installments for loans, and SIPs will remain unaffected by the RBI’s new Additional Factor Authentication guidelines.

RBI’s motive for refabrication of norms

RBI stated that the Additional Factor Authentication guidelines have made digital transactions in India secure. The foundational objective of the Additional Factor Authentication guidelines is to protect consumers from deceitful transactions and improve the convenience of the consumer.

Via: Short URL
Tags: Additional Factor AuthenticationAuto-debitdigital securityReserve Bank of India
Sakshi K S

Sakshi K S

Sakshi is a professional content writer engaging readers with gripping business news stories.

Related Posts

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy
Economy

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

by Riya Thomas
March 21, 2023
First Republic Shares Plummet Amid Liquidity Fears
Banking

First Republic Shares Plummet Amid Liquidity Fears

by Anuj Singh
March 21, 2023
Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated
Technology

Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated

by Rahil Adnan
March 21, 2023
UEM Edgenta Paves the Way for Non-Clinical Tech Companies To Improve Healthcare Services
Exclusive Coverage

UEM Edgenta Paves the Way for Non-Clinical Tech Companies To Improve Healthcare Services

by The Global Economics
March 21, 2023
Saudi Real Estate Refinance Company (SRC) mulls its largest refining deal worth $1.3bn with Alrajhi
Islamic

Saudi Real Estate Refinance Company (SRC) mulls its largest refining deal worth $1.3bn with Alrajhi

by Riya Thomas
March 20, 2023
Previous
Next
Facebook Twitter Instagram Youtube LinkedIn Soundcloud
The Global Economics

The Global Economics Limited is a UK based financial publication and a quarterly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

DMCA.com Protection Status

  • Privacy
  • Legal
  • Terms of Use
  • Client’s Voice
  • Server Status

norton verified - the global economics

Latest Posts

First Republic Shares Plummet Amid Liquidity Fears

First Republic Shares Plummet Amid Liquidity Fears

March 21, 2023
Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

Sri Lanka: IMF approves $3 billion bailout for a crisis-stricken economy

March 21, 2023
Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated

Amazon Announces Second Round of Layoffs, 9000 Roles to be Terminated

March 21, 2023
Download The Global Economics PWA to your mobile or Desktop
PWA App Download
Download The Global Economics Android App to your mobile or Desktop
Android App
Download The Global Economics IOS App to your mobile or Desktop
IOS App

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

No Result
View All Result
  • About us
  • Awards
  • Magazine
  • Client’s Voice
  • Exclusive Coverage
  • Nominate
  • Login
  • Sign Up

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

Welcome Back!

Sign In with Facebook
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00
Go to mobile version