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CLAIM ID

c4dc1a18

RBI has banned the auto-debit facility from April 1, 2021.

RBI has extended the timeline to process the E-Mandate for auto-debit payments. The present system has not been changed.

The E-Mandate framework is initiated by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to collect recurring payments. In recurring/subscription/automated payments, a customer can authorize the stakeholders to debit an amount at fixed intervals. E-Mandate is valid on cards(debit, credit, and Prepaid Payment Instruments (PPIs), including wallets) only for recurring transactions and not for a "once-only payment."

On March 31, 2021, the RBI released a statement extending the timeline for processing recurring online transactions due to non-completion of the implementation of the E-Mandate and AFA framework by few stakeholders. RBI has extended the time by six months, i.e., until September 30, 2021, to prevent large-scale consumer inconvenience and default. The new electronic mandate rules for debit and credit cards will now take effect on October 1.

The framework required merchants and banks to send a pre-transaction notification before processing the auto-debit feature on cards for recurring transactions. The maximum amount for the E- Mandate arrangement was Rs. 2,000, raised to Rs. 5,000 in December 2020.

However, there is no word on banning the auto-debit feature, so we mark the claim as false.

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