What you need to know about RBI's new auto-debit rules
RBI's new rules around auto-debits on digital payment methods went into effect on October 1st, 2021. Here's what you need to know: What is happening? "Auto" debits are no longer fully automatic. What RBI is mandating is that your bank informs you 24 hours prior to a recurring payment on your credit card, debit card or UPI ID, that the transaction is coming up. You can view, delete or modify the transaction accordingly. For transaction amounts that are greater than ₹5000, you will need to manually authorise it using the OTP that your bank sends you. This shouldn't affect most subscriptions such as Netflix as our transaction sizes tend to be under ₹5000. However, we'd recommend staying on top of these payments to avoid disruption to your services, EMIs, SIPs, etc.
Why is RBI doing this? These rules are implemented to protect customers from online fraud and getting charged for stuff we didn't sign up for or authorise in the first place.
Is this a boon or bane? While this may seem like another thing that's being added to our already overflowing task-lists and SMS inboxes, it can be a good way to keep a check on your subscriptions and recurring payments - and cancel the ones you don't really need.
These set of changes are expected to come with some teething issues, since banks have had to implement a new set of features. We'll continue to keep you informed on the Basis Community!