This extension will enable banks to complete the migration process to the new framework, while ensuring efficient customer service
RBI on Wednesday extended the timeline for the implementation of new rules for recurring online transactions to September 30. This framework was first introduced in August 2019, applicable across cards and wallets. It was extended to Unified Payments Interface (UPI). This extension will enable banks to complete the migration process to the new framework while ensuring efficient customer service.
The new rules include strict two-step authentication, which is a disruption to the existing payment ecosystem. These include credit card services and platforms that require recurring payment systems such as utility bills, OTT platforms and telecom services. For payment over INR 5,000 a One Time Password (OTP) will be sent by banks to customers.
The new system is more complex than the existing one, but given the cybersecurity threats and fraudulent transactions, improved regulations have become important.
Source: Business World
