Changes in auto debit system from date 1, customers upset due to non-renewal of subscription automatic

RBI New Rules: A major change has been implemented in the auto debit facility from October 1. But due to this RBI rule, those customers who have taken monthly subscription of Netflix, Amazon Prime, other OTT or New York Times are facing huge problems. From October 1, his subscription is not being renewed automatically. For this problem being faced by the customers, those banks are responsible who have not changed their system under the new rule issued regarding changes in the auto debit system facility. Barring a few banks, customers are facing problems due to lateness of most of the banks.

Banks did not change the system in time

Small businesses or startups that used to run on the subscription model, have been in trouble since the implementation of the new RBI rules regarding recurring payments, as they are continuously losing customers due to this rule. Especially the problem is from the banks, which did not change their system before the new rules of RBI came into existence. Due to which the subscribers are facing problem in making Recurring Monthly Payment.

Netflix, Amazon Prime subscription problem

After the problem in Monthly Recurring Payment, Amazon has stopped its free Prime subscription service in India for the time being. Netflix is ​​asking customers to reset their payment mode. Apple has advised its customers to top up their closed loop wallet Apple ID to ensure smooth payments.

RBI’s new rule regarding auto debit facility

Actually, from October 1, there has been a big change in the facility of auto debit facility or recurring payment. The Reserve Bank of India had issued a directive to banks to provide an extra layer of security to consumers, which came into effect from October 1. According to the RBI, banks will now provide the facility of ‘Additional Factor Authentication’ on auto debit payments to customers, that is, if you have subscribed to any over-the-top (OTT) platform, then the automatic payment for every month. It won’t happen on its own anymore. If payment is to be made more than Rs.5,000 then your bank will have to take one time approval from you before ok payment. You will get a notification in this regard 24 hours before the payment and till you approve it, money will not be deducted from your account.

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