April 08, 2021
Starting April 1st, 2021, the rules regarding recurring payments for utility, OTTs, etc. are likely to change as the Reserve Bank of India (RBI) made Additional Factor Authentication (AFA) mandatory after Mar 31st. This may impact everybody's monthly subscriptions for streaming platforms such as Netflix, Amazon Prime, Hotstar, etc. As part of risk mitigation measure, on December 4th, 2020, RBI had notified all banks and payment gateways that the processing of recurring transactions using cards or a unified payment interface (UPI), under an arrangement and/or practices not compliant with AFA would not be continued beyond March 31st, 2021. Effective April 1st, 2021, banks will be required to inform customers in advance about recurring payment up to Rs 5000 and the transaction will only be carried out once the customer agrees. For recurring payment beyond Rs 5000 banks will be required to send a onetime password to the customer. As of April 1st, the implementation of this program has been delayed by 6 months.