The Reserve Bank of India (RBI) had issued a statement in March this year in which the deadline for processing online transactions was extended. RBI extended it by six months. At the same time, this deadline is ending by the end of September 2021 and the new rules will be applicable from the month of October. That is, now users’ Netflix and Hotstar accounts will not be renewed automatically. Let us know about it in detail.
First there will be more security
In fact, the RBI had essentially introduced this new rule in an attempt to make the monthly transaction process more secure using the Additional Factor of Authentication (AFA). This includes transactions made through debit cards, credit cards, Unified Payments Interface (UPI) or other prepaid payment instruments (PPIs).
Monthly transactions will happen on these platforms
These payments are usually for utility bills, mobile subscription bills as well as payments for streaming platforms. The most affected by this auto-payment system will be Netflix, Amazon Prime, Disney + Hotstar etc., which will now have monthly transactions.
‘Safe transaction is our first priority’
Speaking about the need for this move, RBI said, “The need for Additional Factor of Authentication (AFA) has made digital payments secure in India. In the interest of customer’s convenience and safety in using Online Payments, it is mandatory to use AFA during registration and first transaction (extended up to 5,000 with a limit of 2,000 for subsequent transactions). RBI said that our first objective is to protect customers from fraudulent transactions and increase the convenience of customers.
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