The Reserve Bank of India (RBI) on Wednesday prolonged the deadline for added authentication on card funds for recurring transactions by six months until September 30, 2021.
Initially relevant to playing cards and wallets, the framework was later prolonged to cowl Unified Payments Interface (UPI) transactions as nicely.
“To prevent any inconvenience to the customers, Reserve Bank has decided to extend the timeline for the stakeholders to migrate to the framework by six months, i.e., till September 30, 2021,” the Indian central financial institution mentioned in a press launch.
The RBI additional mentioned that this non-compliance of its framework past the prolonged timeline goes to be a critical concern and be handled individually. It additionally warned all banks of strict supervisory motion who fail to stick to the given timeline.
“Any further delay in ensuring complete adherence to the framework beyond the extended timeline will attract stringent supervisory action,” the assertion mentioned.
In August 2019, RBI had issued a framework for processing e-mandates on recurring on-line transactions. On December 4, the central financial institution had directed all banks together with RRBs, NBFCs, and cost gateways that the processing of recurring transactions (home or cross-border) utilizing playing cards or Prepaid Payment Instruments (PPIs) or Unified Payments Interface (UPI) below preparations/practices not compliant with AFA wouldn’t be continued past March 31, 2021.
