Banks direct customers to switch to alternate payment methods as automatic debit system will fail from April 1

HDFC Bank, ICICI Bank, SBI as well as card scheme operators like American Express and Mastercard are notifying network partners about their inability to process standard instructions recurring mandate-based payments.

Banks are notifying customers to switch to alternate payment methods as all recurring automatic payment methods that are linked to a customers’ credit or debit cards will fail from April 1, 2021, as banks have not complied with the Reserve Bank of India’s new guidelines. The new guidelines have made Additional Factor Authentication (AFA) for banks mandatory. The new norms require banks to inform customers in advance about recurring payment methods. This means the money will only be debited from a customer’s account only after his or her consent. For transactions above Rs 5000, banks will also be required to send one time passwords to customers HDFC Bank, ICICI Bank, SBI as well as card scheme operators like American Express and Mastercard are notifying network partners about their inability to process standard instructions recurring mandate-based payments, as per reports. Vendors have also suggested alternate payment methods to users.