RBI New Rule For Auto Debit: The Reserve of India (RBI) has given a major gift to the clients doing auto charge in the gathering of the Monetary Policy Committee. RBI has expanded the restriction of auto charge for example repeating installment from Rs 5000 to Rs 15,000. Allow us to let you know that before January 1, 2021, the cutoff for repeating installment used to be Rs 2000. In any case, because of the rising pattern of auto installment, RBI has expanded its cutoff to 15000 rupees.
What is Repeating Payment?
The inquiry, first of all, emerges that what is repeating installment? So let us let you know that common installment is a programmed installment. OTP must be placed for auto installment. After this, the installment will be done naturally consistently. The standard was executed interestingly on 1 October 2021 by RBI in regards to auto charge. In this, upon the arrival of auto charge, banks are expected to send the message to the client 24 hours ahead of time.
Where is The Use of Reckoning Payment
Recurring i.e. auto payment is used for fixed services every month. For example, recurring payments are used for payments like electricity bills, Ototi platforms like Netflix, Amazon Prime. All these services are debited on their respective dates without OTP.
Increasing trend of auto debit in India
According to RBI, most of the banks are providing the facility of auto debit. The number of auto debit transactions is increasing day by day. At present, more than 6.25 crore transactions have taken place under this facility. This includes 3,400 international merchants. In such a situation, an increase in the limit of auto payment has been announced by RBI.
