Harsh jha 

New delhi : Recently  RBI has introduced new guidelines on debit and credit cards  auto payment system. Know more about new OTT rules

Any user who subscribe to any OTT platform (Netflix, Amazon Prime etc.)    
He/ she get two payment system first one is one time payment system (for a certain time and after that it may disable automatically) and second one is standing instructions which is also called auto payment where the money will be debited automatically until he/she will not cancel that subscription. 

Both bank and merchants (Netflix, Amazon) had to fulfill new guidelines from April 1 . 

Bankers say that while they are ready to offer the service and have compiled with RBI guidelines
Where as, merchants (airtel, Netflix) are not ready yet and until they adhere to the norms it may lead to some inconvenience on payment. 

Source=google images (reserve Bank of India) 



Which means that if you had provided an E-mandate for your mobile bill payment or Netflix monthly, subscription fees etc.and it was on auto payment system I.e debited to your card every month. So their may be hinder in it from April 1.


Customer will have to pay their bills directly to the service providers as and when thay become due in order to continue that service. 
And this will continue until banks and service providers cannot fullfil their requirements. 

What are the new guidelines? 


RBI has now asked the banks to send a pre-debt notification to their credit card user 24 hours before and actual debit to the credit card. 


This can be through sms Or an email as per the customer. 

The notification will inform the cardholder abut the name of the merchant (Netflix or Amazon Prime) transaction amount, date and time of debited amount. 

There has to be a validity period for auto payment. 

RBI has also called for certain Audit trail related requirements(record all the transaction) 

During the registration process the cardholder should be given an option to provide E-mandate for either on fixed value(₹200) or a variable value (₹200-₹500) of the reoccurring transaction. 

And the  maximum amount which can be debited is to be ₹5000 . 

After the implementation of these new guidelines a cardholder who wants to opt for e- mandate facility on the card should undertake a one -time registration process, with additional factor of authentication validation by issuer (bank). 
 
The bank will have to provide the cardholder an online facility to withdraw any E-mandate at any point of time.