RBI Extends Timeline for Recurring Online Transactions
This decision of extending the timeline has been taken by RBI to prevent any inconvenience to customers.
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The Reserve Bank of India (RBI) on Wednesday, 31 March, announced the extension of the deadline for recurring online transactions to 30 September 2021.
This decision of extending the timeline has been taken by RBI to prevent any inconvenience to the customers. “Reserve Bank has decided to extend the timeline by six months to help stakeholders migrate to the framework, i.e., by 30 September 2021,” RBI said in a press release.
Earlier in 2019, the RBI had issued a framework for processing e-mandates on automatically recurring card payments. In January 2020, RBI extended to Unified Payments Interface (UPI) transactions.
However, since the framework was not implemented by several stakeholders despite the extension of deadline from December 2020 to 31 March 2021, the central bank decided to further extend the deadline to prevent any inconvenience to customers.
The primary objective of the framework was to protect customers from fraudulent transactions and enhance customer convenience. “Based on a request from Indian Banks’ Association (IBA) for an extension of time till 31 March 2021, to enable the banks to complete the migration, Reserve Bank had advised the stakeholders in December 2020 to migrate to the framework by 31 March 2021,” RBI said in a statement.
“The delay in implementation by some stakeholders has given rise to a situation of possible large-scale customer inconvenience and default. 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 30 September 2021,” the statement added.
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