Updated: April 1, 2021 12:30:40 am
The Reserve Bank of India (RBI) has decided to extend the timeline for banks and other institutions to migrate to the framework for processing of e-mandates on recurring online transactions by six months to September 30.
The earlier deadline to migrate to the Additional Factor of Authentication (AFA) ended on March 31. “Any further delay in ensuring complete adherence to the framework beyond the extended timeline will attract stringent supervisory action,” the RBI said. It has warned that non-compliance is noted with serious concern and will be dealt with separately.
In August 2019, the RBI had issued a framework for processing of e-mandates on recurring online transactions. Initially applicable to cards and wallets, the framework was extended in January 2020 to cover Unified Payments Interface (UPI) transactions as well. Based on a request from Indian Banks’ Association (IBA) for an extension of time to enable the banks to complete the migration, the RBI had advised the stakeholders in December 2020 to migrate to the framework by March 31, 2021. Thus, adequate time was given to the stakeholders to comply with the framework, the RBI said.
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The central bank said the framework has not been fully implemented even after the extended timeline.
“This non-compliance is noted with serious concern and will be dealt with separately. The delay in implementation by some stakeholders has given rise to a situation of possible large-scale customer inconvenience and default,” it said.
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