Standing instructions at standstill? RBI norms to hit automatic payments from April 1

Updated : Mar 30, 2021 12:17
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Editorji News Desk

It was a circular the RBI put out in August 2019 but its coming to impact customers from April 1. As the new month starts your standing instructions for payments towards credit cards,OTTs, subscriptions will come to a stand still and will require you to give approvals for each of them.

As per RBI's circular banks will have to send a notification to customers five days before a particular auto-payment is scheduled and can go ahead with the transaction only after it is approved by the user reports Economic Times. 

Even as it is likely to cause a big disruption to automatic payments many also argue this is much needed as auto debit systems have led to many subscriptions running endlessly for customers. 

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