RBI: Now the worry of money being deducted from your bank account without your knowledge is going to end to a great extent. The Reserve Bank of India (RBI) has implemented new rules related to e-mandate, making the auto debit system more secure and transparent than before. The direct benefit of these rules will be given to crores of people from whose accounts EMI, subscription or bills are automatically deducted every month.
Under the new rules, now before starting any auto payment, the customer will have to register once. Along with this, extra authentication will also be necessary. This means that no auto debit can be activated without your permission.
Alert will be received 24 hours before every cut
The biggest change is that now before every auto payment, the bank or company will have to inform the customer at least 24 hours in advance. In this alert, the name of the company, amount of payment, date and other important information will be given. With this, if there is any mistake or unwanted transaction, the customer can stop it in time.
No OTP required for payments up to ₹15,000
RBI has set a new limit to make small payments easier. Now there will be no need to enter OTP every time for auto debit payment up to ₹ 15,000. However, this limit has been increased to ₹1 lakh for essential payments like insurance premium, mutual fund and credit card bills. With this, big payments can also be made easily.
Complete freedom to change or discontinue e-mandate
According to the new rules, the customer will have the right to change his e-mandate at any time or close it completely. This will give users complete control over their money and will protect them from unwanted payments.
Auto payment will continue even after arrival of new card
If your debit or credit card changes, you won’t need to set up auto payments again. Already linked e-mandates will be automatically linked to the new card, allowing EMI or bill payments to continue uninterrupted.
Which services will the rules apply to?
These new rules will be applicable to OTT subscriptions, insurance premiums, electricity-water bills, EMIs and all other auto payments made through cards, UPI or prepaid. However, this rule will not apply to auto recharge of FASTag and National Common Mobility Card.
