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