If money is being deducted from your bank account without your knowledge, then this news will prove to be very useful for you. To address concerns about unauthorized deduction of money from bank accounts, the Reserve Bank of India (RBI) has implemented new rules regarding e-mandates. After these changes, the auto-debit system has become more secure than ever. This new step will benefit those people from whose account money is automatically deducted every month for EMI, subscription or utility bills. Come, let us get complete information about these new changes.
Important alert before deducting money
1. The biggest change made under the new rules is that it is now necessary to inform customers before any auto-payment transaction.
2. Now it is necessary for banks or related companies initiating payments to send an alert at least 24 hours in advance.
3. This alert will include the name of the company, amount to be deducted, due date and other important information. This ensures that customers know in advance when and how much money is going to be deducted from their account. If anything appears amiss or unauthorized, customers can intervene and stop the transaction in time.
Auto-payment requires prior approval
1. According to the new rules, now customers will have to complete the registration process once before starting any auto-payment facility.
2. Another level of verification has also been made mandatory for customers. This means that no auto-debit facility can be initiated without the customer’s express approval, significantly enhancing the security of their bank account.
Which services come under the purview of the new rules?
These new auto-payment rules will be applicable to services like OTT subscription, insurance premium, utility bills (electricity and water) and EMI. Additionally, auto-debit transactions done through cards, UPI or prepaid instruments will also come under the ambit of these rules.
Which services are exempted from the new rules?
In certain cases, these new rules will not apply. For example, these rules will not apply to auto-recharge facilities linked to FASTag and National Common Mobility Card. As a result, the existing modus operandi for these specific services will remain the same.
