A large number of customers keep their insurance payment renewal service of a service renewal service OTT platform in automatic mode. After the new guideline, now customers will have to approve the OTP from the bank every time for payment.
Your bank may be asking you for your permission these days when making recurring payments or scheduled payments through debit cards, credit cards or third party apps. Actually, banks have made this arrangement under the new guidelines implemented by RBI regarding recurring payments. Behind this new guideline is a well thought out strategy of RBI and banking experts. This will have economic, strategic and long-term implications.
this will affect
A large number of customers keep the service of their insurance payment, renewal of any service, renewal of service of OTT platform in automatic mode. After the new guideline, now customers will have to approve the OTP from the bank every time for payment.
Will be able to avoid cybercrime, this will also be beneficial
Banker and economist Manoranjan Sharma says that the new guidelines issued by the RBI regarding recurring payments will benefit customers a lot. Under this, customers will be saved from the possibilities of many frauds. For every payment above Rs 5000, the bank will need to take the customer’s permission. However, due to this new guideline, customers will have to confirm OTP every time. Praveen Khandelwal, General Secretary of Traders’ Association CAT, says that RBI’s new guideline on recurring payments is a great step. This step will increase the confidence of the common people in digital payments. The chances of fraud will be greatly reduced. Many small businessmen and common people avoid making digital payments just because they do not get scammed.
Your approval will be required on these payments
The Reserve Bank has clarified that the Recurring Payment Guidelines will be applicable to all types of card payments, ie debit/credit cards, prepaid payment instruments like wallets (such as Paytm etc.), UPI payments. This rule will be applicable even if you have given a mandate for any DTH bill, utility bill, phone recharge, OTT fee etc. from your credit card or debit card, wallet.
keep these things in mind
RBI says that this rule is for recurring transactions i.e. on card payments every month. Not on any lump sum payment. Suppose you have taken a subscription to Netflix and have given your credit card details to pay for it every month. This deducts your monthly charge. So this charge will be deducted in the same way, it will be that you will get a message already, whether to pay the next month’s fee or not.
this is the big reason
Diversifying the market : RBI wants to diversify the recurring payments market. Many big companies build their subscription model in such a way that people become dependent on it. In such a situation, it is necessary to diversify the market to create quality.
Promote Make in India: Under this guideline, the government also wants to promote Make in India. Foreign companies have many options or big offers, which bind the customer for a long time. Even under the subscription facility, every time the customer is asked, if a small Indian company offers a better facility, then people will be able to switch to it. This will give a boost to Make in India.
Cybercrime will stop: This will stop cyber frauds done through debit cards, credit cards and third party apps. In this way the number of frauds is very high at present. This will bring great relief to the customers.
This is how digital payment will become safe
Yogesh Dayal, Chief General Manager, Reserve Bank of India believes that instructions have been issued by the RBI to implement the system of e-mandates for recurring online transactions. These are currently fully applicable on all types of cards, wallets and all types of UPI. The main objective of this guideline is to make the digital payment system more secure. This system will reduce the cases of online fraud. RBI has given enough time to banks to implement this arrangement.
they are having trouble
Vishwas Patel, chairperson of Payments Council of India, says that the RBI had been talking about bringing this system for a long time, the big banks were ready for this new guideline, but some small banks did not prepare for it, the deadline has passed. After that some small banks are finding it difficult to implement this system.
This was the opinion of Walter and Nilekani committee regarding digital payment
The Walter Committee and the Nilkani Committee had given recommendations on digital payments to the RBI in 2016 and 2019 respectively. In which the options for promoting digital payment were told. It was implemented by RBI at several points.
Such is the situation around the world regarding cashless payment
In the last decade, online transactions have increased in the world including India. People have started considering it as the best means of payment for work. According to the survey report of the Global Web Index, people in South Korea give the highest priority to cashless payments.
According to the report, 77 percent of the people surveyed in South Korea admitted that they give more priority to cashless payments. At the same time, 32 percent of the people in the US said that they prefer transactions with cash. In some developed countries, people still prefer to work by cash. Among the 46 countries covered in this survey, people in the Philippines and Egypt prefer cashless payments the least. In these countries, 33 percent of people considered cashless payment as their first choice, while in Morocco 34 percent said it was their priority.
Such is the opinion of the people in India
After South Korea, Sweden and Russia have the highest number of people, 74 and 72 percent, respectively, with cashless payment as their first choice. In China, 67 percent people said that it was their priority, while in India 52 percent people believed that cashless payment is the better option.
The report also noted that both India and Indonesia are the fastest growing online markets. There has been a huge growth in population in the cards in Asian countries over the past five years. China, India and Indonesia have seen growth of 69.3 percent, 136.3 percent and 56.7 percent respectively.
people still prefer cash because
A number of facts emerged after analyzing the priority of cash in some developed countries. The biggest reason for preferring cash is the absence of bank accounts and cards in these countries. According to the Central Bank of the Philippines, as of 2019, only 29 percent of adults had a bank account.
HDFC Bank is strictly adhering to the RBI’s Recurring Payment Guidelines. Also, for the convenience of our customers, we are continuously updating the list of merchants who have started adhering to this guideline. In addition, we are also providing our customers with other payment options that they can choose from, such as HDFC Bank Debit or Credit Card to make payment on the Merchant Website/App, Auto Pay on Debit or Credit Card or SmartPay From using PayZap to setting up through Net Banking or making one-time payments, paying for insurance, electricity, broadband, etc.
