HDFC Bank, ICICI Bank and Axis Bank are slated to meet the Reserve Bank of India’s mandate for recurring payments before October 1 deadline.
The announcement comes from respective bank spokespersons and communications sent by the lenders to customers.
Due to the new central bank rules, there might be some issues or disruptions with the payments ecosystem in India when it comes to recurring payments through debit and credit cards.
As per sources, these three banks are working with payment aggregators Razorpay and BillDesk to integrate with a common e-mandate platform that will ensure compliance.
As per RBI’s new rules, banks can only process auto-debit transactions if they send a pre-debit notification to customers at least 24 hours before the payment.
However, several banks have already expressed their inability to comply with this rule earlier.
The RBI had also postponed the implementation of this rule in March 2021.
The new rule also requires that auto-transactions above Rs 5,000 will require customers to authenticate such payments manually with an OTP.
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