Lessons for RBI from its mandate that made recurring payments a nightmare
The frustrating experience of a recurring card payment to a foreign merchant failing and the card being declined is one which is all too familiar for most of us. Every now and then, you can find someone complaining about failed card payments on social media. This is largely due to the onerous regulations put forth by the Reserve Bank of India (RBI).
The RBI had mandated that from October 1, 2021, for every recurring transaction below Rs 5,000, banks must send a notification at least 24 hours before the renewal date. For amounts over Rs 5,000, a one-time password was required to authorise every transaction.