The Reserve Bank of India (RBI) on Wednesday announced the extension of timeline for processing of recurring online transactions.
In a huge relief for banks, RBI has extended the timeline for processing the recurring online transaction by six months to September 30, 2021.
In 2019, the RBI had issued a framework for processing of e-mandates on recurring online transactions that made the use of Additional Factor of Authentication (AFA) compulsory for safety.
However, the framework has not been fully implemented by the stakeholders even after the extension of the deadline from December 2020 to March 31.
Hence to prevent any inconvenience to customers, the central bank has extended the deadline by six months for the stakeholders to migrate to the framework.
Any further delay in compliance with the framework beyond the extended date will lead to stringent supervisory action, the central bank added.
The framework which was initially applicable to cards and wallets was extended to Unified Payments Interface (UPI) transactions in January 2020.
For customer safety and convenience, the framework mandated the use of AFA during registration and first transaction (with relaxation for further transactions upto a limit of ₹2,000, since enhanced to ₹5,000) including pre-transaction notification, facility to withdraw the mandate, etc.
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