Rules on bank e-mandates, pension life certificates, merged government bank cheque books and salary structures for fund house staff are set to change
Several of your key money matters are set for a reset from today. Here are some key regulatory and operational changes that are likely to affect your financial life. Everything Banking News & Important Banking News 2
Automated payments on cards for monthly subscriptions may not work
From October 1, all recurring transactions above Rs 5,000 on debit or credit cards and other prepaid instruments will require an additional factor of authentication (AFA). For subsequent automated debits above Rs 5,000, the bank would have to send a notification at least 24 hours in advance.
The notification will contain all information regarding the upcoming debit. It would also give you the option to opt out or pay the amount. All standing instructions set up on your card (both domestic and international) will not be processed, without the AFA. If the recurring amount is less than Rs 5,000, then the merchant will automatically charge even without AFA on your card. But you still need to re-register all the cards once, irrespective of the amount you pay.
“This new RBI framework for recurring auto payment through cards puts greater power in the hands of the customers as they will now have more control over the payments,” says Adhil Shetty, CEO of BankBazaar.com. Experts recommend updating your mobile number in the bank records, as banks send OTPs on the registered mobile number.