Several users reacted to the video with some sharing dissatisfaction with the RBI‘s recurring payment system while others found the transaction norm valid.

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A user in the comment section of the video post wrote, “I had to stop using apps that charge in USD because of this. The cards were getting rejected and I was getting penalised for late payments. That’s why even Apple removed the card option completely due to RBI changes”.

Another user wrote, “RBI will have to be tagged. Don’t think they are checking Twitter regularly”.

“My card mandates worked fine forever, no monthly OTP required. Is this specific to business users or something?”, a X user asked on the same post.

RBI’s recuuring payment system

In 2021, RBI launched the New Recurring Payment Rules under which subscription-based app users will be required to give their consent and go through a two-factor authentication process for every payment above ₹5,000. The RBI had said that recurring transactions using debit cards, credit cards, Unified Payments Interface (UPI) or other prepaid payment instruments (PPIs) will need additional factor authentication (AFA).

Debit, credit card: No OTP needed for recurring payments up to ₹15,000

However, this year, the RBI increased the limit for e-mandates/ standing instructions on credit/debit cards and prepaid payment instruments (PPIs) for recurring transactions to ₹15,000. That is, for transactions above the cut-off, an additional one-time password (OTP) will be needed. According to RBI, now with any transaction, the customer’s consent is a must. The cardholder will also have an option to “opt out of that particular transaction”.

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Updated: 25 Nov 2023, 02:23 PM IST