InvestorQ : I got a message from my bank that auto pay transactions will be declined from 01 April. What does it means and what should I do?
sarah Leo made post

I got a message from my bank that auto pay transactions will be declined from 01 April. What does it means and what should I do?

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Rashi Mehra answered.
3 weeks ago
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You are right and this is as per the RBI circular of December 2020 saying that all auto-debit and autopay transactions above Rs.5000 will require additional OTP authentication. With RBI unwilling to extend the deadline, the Banks are likely to decline auto payments from April 1 if the OTP based dual authentication is not used. A notification would be sent to customers 5 days before an automatic payment is scheduled for approval.

People give recurring mandates for credit cards, utility bills, post-paid services etc. If all these auto pay transactions get rejected it could create a huge disruption. However, UPI transactions will continue as scheduled. The issue is expected to be resolved shortly but it could cause disruption in between. In case you have any auto pay registered, ensure that you have the OTP authentication process set.

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