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No automatic recurring payment from April

On December 4, 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 March 31, 2021. As part of the risk mitigation measure, RBI announced this step to bolster the safety and security of card transactions.
Under these new norms, banks will be required to inform customers in advance about recurring payment due and the transaction would be carried the following a nod from the customer. So the transaction would not be automatic but would be done after authentication from the customer. In simple words, For recurring payments above Rs 5,000, banks are required to send a one-time password to the customer as per the new guidelines.
However, banks and payment gateways are seeking additional time to comply with the RBI directive on automatic

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