RBI Rule Change: RBI has amended the rules related to auto-debit. Now, you will receive a 24-hour alert before any payment. Let's learn more about this new change.
Now money will not be deducted without information!
RBI e-mandate Rules Auto Debit: If money is deducted from your bank account without your knowledge, this news will be very useful. To alleviate the concerns about uninformed money being deducted from your bank account, the Reserve Bank of India (RBI) has implemented new rules related to e-mandates.
Following these changes, the auto-debit system has become more secure than before. This new change will benefit those whose EMIs, subscriptions, or bills are automatically deducted from their accounts every month. Let's learn more about this new change.
You will receive an alert before the cut.
1. The most important change in the new rules is that now the customer will have to be informed before any auto payment.
2. It will be necessary to send an alert to the bank or the concerned company at least 24 hours in advance.
3. The alert will include the company name, the amount to be deducted, the date, and other necessary information. This will let customers know in advance when and how much money will be deducted from their account. If something seems inappropriate or unwanted, customers can stop it in time.
Approval will be required before auto payment
1. According to the new rules, now the customer will have to register once before activating any auto payment.
2. Extra verification has also been made mandatory for customers. This means that no auto-debit can be activated without the customer's permission. This further enhances account security.
Which services will the new rules apply to?
These new auto payment rules apply to services like OTT subscriptions, insurance premiums, electricity and water bills, and EMIs. Auto-debits using cards, UPI, or prepaid methods will also fall under this scope.
The new rule will not apply to these services.
The new rules will not be applicable in some cases. For example, these rules will not apply to auto-recharge of FASTag and National Common Mobility Card. This means that the existing system for these services will continue.
