Rules To Be Changed For Auto-Debit Transactions with effect from October 1st,2021

Till Now, monthly bill payments and mutual fund sip’s are auto-debiting from the customer’s account once the customer gives consent to the bank for auto-debit on a particular date.

But it is not possible from October 1st,2021. As per the recent guidelines the bank has to cross-check 2 factor authentication to pass auto-debit transaction. For this, the bank has to send intimation to the customer 5 days before or at least before 24 hours to confirm the payment.

The transaction would be processed once the customer accepts OTP up on the bank’s request. This is ensure to protect the customer from frauds and forgo unknown transactions from the customers bank a/c.

Earlier this proposal would be proposed from april 2021, but due to covid fears this was extended to october 1st,2021. If all the things would be done rightly, your mutual fund sip’s and bill payments requires 2 factor authentication from next month onwards(October 1st, 2021).

So be ready to face the consequences. Update your mobile number with the bank to complete 2 factor authentication.

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