The Reserve Bank of India, RBI, today extended the deadline to process recurring online transactions with additional factor of authentication, AFA, to 30th September of this year from the last date fixed for today. The RBI said, to prevent any inconvenience to the customers, it has decided to extend the timeline for the stakeholders to migrate to the framework by six months. The framework regarding it mandated the use of AFA during registration and first transaction, with relaxation for subsequent transactions up to a limit of Rs 5,000.
Indian Banks’ Association (IBA) and payment gateways had sought additional time to comply with the RBI directive on automatic recurring payment.
On 4th December last year, the RBI had directed all banks including RRBs, NBFCs, and payment gateways that the processing of recurring transactions, domestic or cross-border, using cards or prepaid payment instruments or unified payments interface not compliant with AFA would not be continued beyond 31 st March 31, 2021.
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