The Reserve Bank of India (RBI) has extended the timeline for processing recurring online transactions by 6 months to 30th September, 2021.
A central bank notification said the industry has not fully implemented the new framework it announced in August 2019, and that “non-compliance will be dealt with seriously”.
On 4th December 2020, RBI had directed all banks including RRBs, NBFCs, and payment gateways that the processing of recurring transactions (domestic or cross-border) using cards or Prepaid Payment Instruments (PPIs) or Unified Payments Interface (UPI) under arrangements/practices not compliant with AFA would not be continued beyond 31st March, 2021.
However, providing a relief to banks, customers and the digital payments ecosystem unprepared for the 31st March deadline, the new electronic mandate rules for debit and credit cards will now take effect on 1st October, 2021.
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