Netflix, Disney + Hotstar, and utility bill auto-payment subscriptions may fail from April 1st. The ReserveBankofIndia has requested banks to take security measures for such transactions.
Banks need to perform additional authentication for recurring transactions, including credit cards, debit cards, UPIs, and other prepaid products.
The bank must send a notification to the user 5 days before the merchant withdraws from the customer’s account. The transaction is executed only if the customer approves the transaction.If the amount is above, the bank will also need to send a one-time password (OTP) for recurring payments ￡5,000.
If the customer is disapproved, such a transaction will fail. Individuals must pay manually. Industry groups have already raised the issue of RBI, stating that millions of transactions can fail due to additional authentication.
Industry groups said, “According to industry talks, most major upcoming commercial banks have not improved their ability to comply, which has allowed other participants in the ecosystem, such as acquirers and card networks, to We were unable to fulfill our obligations under these circulations. ” Indian Internet and Mobile Association (IAMAI).
According to a report by The Economic Times, major banks and vendors are not ready to implement RBI guidelines. Banks such as HDFC Bank, ICICI Bank, Axis Bank, State Bank of India, and major cardholders such as American Express and Mastercard have informed their partners that they will not be able to process recurring payments based on new regulatory standards. ..
To follow RBI guidelines, all stakeholders (banks, card networks, and merchants) must be part of a complex integrated system for executing transactions.
According to the Business Standards report ￡Rs. 200 billion is expected to be affected across sectors spanning credit card payments, utilities, video streaming and more.
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Invoice and OTT platform auto-payment may fail from April 1st
Source link Invoice and OTT platform auto-payment may fail from April 1st