By Admin 
- RBI implemented new rules for auto debit.
- The customer will get an alert 24 hours before the cut.
- Customer approval will be required before auto payment.
- New rules on OTT, EMI, bills, not on FASTag.
RBI e-mandate Rules Auto Debit: If money is deducted from your bank account without your knowledge, then this news will be very useful for you. To reduce the concern about money being deducted from the bank account without any knowledge, the Reserve Bank of India (RBI) has implemented new rules related to e-mandate.
After these changes, the auto debit system has become more secure than before. The benefit of this new change will be available to those people from whose account EMI, subscription or bills are automatically deducted every month. Let us know about this new change.
Necessary alert will be received before deduction
1. The most important change made in the new rules is that now the customer will have to be informed about any auto payment.
2. It will be necessary to send an alert to the bank or the concerned company at least 24 hours in advance.
3. The alert will include the name of the company, amount to be deducted, date and other important information. With this, the customer will know in advance when and how much money is going to be deducted from his account. If something seems wrong or unwanted, customers can stop it in time.
Approval will be required before auto payment
1. According to the new rules, now before starting any auto payment, the customer will have to register once.
2. Extra verification has also been made mandatory for customers. That means no auto debit can be activated without the customer’s permission. Due to which the security of the account is going to increase further.
On which services will the new rules apply?
These new rules of auto payments will be applicable to services like OTT subscription, insurance premium, electricity-water bills and EMI. Also, auto debit through card, UPI or prepaid mode will also come under this purview.
New rules will not apply to these services
In some cases the new rules will not be valid. For example, these rules will not apply to auto recharge of FASTag and National Common Mobility Card. That means, the same arrangement for these services will continue as before.
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